La  Salle  Extension  University 

(JkeWorU's  Greatest  Sxtensio^Silnwersity 

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Copyright,  1915 
LaSalle  Extension  University 


LaSalle  Extension  *dnt$$P£ty  "-LfNOis  LfBRAmt 

JUL  9  -  J 

Which? 


Which  of  these  two  men  would 
you  rather  be  ? 

Their  earning  power  is  equal. 

From  the  milling  grind  of  twenty- 
odd  years  on  the  firing  line  of 
business,  the  older  man  has  ac- 
quired the  knowledge  essential  to 
success. 

The  younger  man  stored  twenty 
years  of  the  broadest  and  most 
liberal  kind  of  business  experience 
in  his  brain  by  study  and  added 
only  two  years  to  his  age. 

The  Business  Administration 
Course  and  Service  equipped  him 
for  the  business  battle. 

At  thirty  his  knowledge  equals 
the  other  man's  at  fifty. 

Taking  it  for  granted  that  ability 
is  equal,  virile  strength  and  years 
are  on  his  side. 

Which  man  will  go  higher  in  life? 

The  aim  and  object  of  the 
Business  Administration  Course 
and  Service  is  to  arm  earnest  men 
with  years  of  experience  in  weeks 
of  study — to  help  the  man  on  the 
upward  march  become  an  execu- 
tive— to  help  the  executive  climb 
still  higher. 


2  Business  Administration 

Bridging  the  Twenty-Year  Gap 

Look  around  you  at  the  big-salaried  men  of  the  business  world. 

Most  of  them — the  great  majority  in  fact — are  well  past  the 
middle-aged  mark. 

It  is  a  matter  of  record  that  few  men  have  ever  become  million- 
aires through  the  usual  channels  of  business  before  they  reached 
middle  age. 

Why  does  this  "age  question"  seem  to  enter  so  strongly  into  the 
requirements  for  success  ? 

Simply  because  up  to  the   advent  of   the   Business   Ad- 
ministration Course  and  Service  only  one  way  to  ac- 
quire organized  business  knowledge  was  open  to 
the  ambitious  man. 

And  that  way  was  the  hard  way — the 
long  way ;  it  lay  through  actual  ex- 
p  erience  —  years  of  it — re- 
quiring from  ten  to  thirty 

years  in 
the  harness 
before    a    man 
really  had  a  work- 
i  n  g      knowledge   o  f 
business    fund  Amentals. 
But    the  Business  Ad- 
ministration Course    and 
Service  bridges  that  twenty-year 
gap ;  it  places  in  the  hands    of  the 
man  who  wants  it,  all  the  solid,  sound 
principles,  both  specific  and  general,  that 
underlie  business  the  world  over. 
In  two  years  of  spare-time  study  and  daily 
application  in  the  course  of  his  own  work  a  man 
can  gain   experience  that  twenty  years  of  searching 


LaSalle  Extension   University 


and  striving  would  hardly  yield.     How  can  this  be  so? 

Simply  because  in  the  twenty- year  way  you  must  first  find  what 
you  believe  to  be  principles — try  them  out — discard — separate  the 
wheat  from  the  chaff.  And  there's  mighty  little  wheat  when  you 
bulk  it  up  beside  the  chaff. 

In  the  Business  Administration  Course  and  Service  all  this  is 
done  for  you. 

There  are  no  guesses — no  theories ;  the  men  who  compiled  it 
are  authorities  on  the  subjects  whereof  they  treat.  It  is  the  product 
of  no  one  man's  brain.  It  is  the  choicest  culling  of  the  master 
minds  of  business. 

The  Business  Administration  Course  and  Service  is  a  con- 
densed, boiled-down,  usable,  complete  presentation  of  the  active 
principles  of  business. 

And  it  will  do  for  you  in  two  years  what  alone  and  unaided 
would  take  you  twenty — yes,  and  more. 


4  Business  Administration 

WeVe   Done   it   For   You 

Suppose  you  could  spend  several  years  with  the  captains  of 
industry. 

Suppose  these  men  would  open  their  minds  and  their  business 
to  you. 

What  would  the  result  be  in  dollars  and  cents? 

In  the  Business  Administration  Course  and  Service  we've 
done  this  and  more— we've  organized  the  knowledge — we've  sim- 
plified the  presentation  of  the  principles — we've  given  it  a  begin- 
ning and  a  middle  and  an  end.  And  the  work  cf  many  men's 
minds  and  brains  is  given  for  one  man's  profit — that  man  is  you. 

Many  men — accounted  phenomenal  successes  by  the  world  at 
large — are  not  masters  of  all  the  principles  laid  down  and  explained 
in  this  gigantic  storehouse  of  business  fundamentals. 

If  they  with  comparatively  few  of  the  vital  secrets  can  achieve 
power  and  position,  what  can  you  do  with  all  of  them  at  your 
finger  tips? 

The  Business  Administration  Course  and  Service  deals  with 
every  department — every  branch  of  business — treats  it  specifically, 
individually,  and  clearly — then  turns  to  business  as  an  entirety  from 
the  organization  end. 

It  not  only  equips  you  to  forge  ahead  by  sheer  force  of  knowl- 
edge but  places  you  where  emergencies  —unexpected  situations — 
are  met  as  a  matter  of  course;  you  know  what  to  do- — how  to  do  it. 

The  millionaires  of  America  are  testimonials  to  the  force  of 
organized  business  knowledge. 

Luck  in  the  legitimate  course  of  business  never  made  any  man 
a  success. 

Knowledge  and  ambition  invariably  do. 

The  Business  Administration  Course  and  Service  supplies 
the  knowledge — all  of  it. 

You  should  be  willing  to  supply  the  ambition — the  real  desire 
to  climb  steadily  to  or  advance  in  executive  work.  Ambition  plus 
the  Business  Administration  service  will  do  it. 


LaSalle  Extension  University  5 

One  Business  Versus  All  Business 

A  boy  goes  into  an  institution. 

Through  hard  work,  aggressiveness,  and  sterling  ability  he  makes 
his  way  to  the  top. 

But  through  the  fact  that  he  knows  no  other  line  except  his  own, 
he  narrows  down — fails  to  grasp  the  principles  as  fundamentals 
and  sees  only  their  application  as  they  affect  his  own  particular 
concern. 

You've  seen  men  of  this  type — highly  successful  in  one  field — 
change  to  another  field  and  make  rank  failures.  You've  wondered 
why. 

In  a  new  business  they  are  absolutely  at  sea.  Instead  of  having 
been  educated  in  basic  principles,  they  know  the  old  business  and 
that  alone.  They  fail  to  grasp  the  fact  that  the  same  principles 
that  enabled  them  to  make  a  success  still  hold  good. 

The  basic  fundamentals  of  business  are  like  electric  power — it 
may  be  used  for  driving  an  automobile  or  running  a  derrick,  but 
the  underlying  principle  is  exactly  the  same.  Only  the  application 
varies. 

Just  as  certain  laws  of  nature  govern  the  development  of  a  child, 
certain  fundamental  laws  govern  the  growth  and  development 
of  a  business  and  the  men  in  it. 

And  the  Business  Administration  Course  and  Service  deals 
in  the  basic  fundamental  laws  and  principles  that  govern  and  direct 
— not  a  business — but  all  businesses. 

Study  and  application  of  it  not  only  make  a  man  more  efficient 
in  his  own  particular  field  but  remove  the  fetters  that  bind  him  to 
"  the  business  he  knows." 

No  business  can  be  fundamentally  "new"  to  the  man  who  has 
mastered  this  service. 


6  Business  Administration 

Ab  out    Success-Building 

We  may  read  about  fabled  cities  that  sprang  into  being  at  the 
touch  of  a  magic  wand;  but  we  know  that  real  cities  are  not  built 
that  way.     Each  building  goes  up  one  brick  or  stone  at  a  time. 

And  if,  in  reading  about  some  phenomenally  successful  man, 
you  gain  the  impression  that  his  success  is  the  result  of  some  magic 
charm  that  gives  him  a  sort  of  Midas  touch  whereby  everything  with 
which  he  comes  in  contact  turns  into  gold — well,  you've  simply 
gained  the  wrong  impression,  that's  all.  Because  his  success  has 
been  the  result  of  years  of  careful  building. 

You  can  be  what  you  want  to  be — but  first  you've  got  to  know 
what  you  want  to  be  and  have  a  sufficient  desire  to  realize  your 
ambition  to  strive  for  it  diligently. 

Were  you  to  depend  upon  your  own  unaided  efforts  this  would 
mean  years  of  hard,  grinding  work. 

But  you  don't  have  to  depend  wholly  upon  your  own  efforts. 
Effort  you  must  make,  of  course.  But  the  Business  Administration 
Course  and  Service  makes  your  efforts  vastly  easier  and  at  the 
same  time  they  count  for  a  whole  lot  more.  In  other  words  you 
are  building  just  as  carefully  and  with  as  much  attention  to  the 
strength  and  solidity  of  your  success  as  you  could  possibly  do 
by  experience  alone,  but  your  structure  is  going  up  a  great  deal 
faster. 

With  the  aid  of  the  Business  Administration  Course  and  Serv- 
ice your  work — yes,  the  work  you  are  engaged  in  right  now — 
becomes  more  interesting  and  more  profitable.  It  keeps  on  getting 
more  interesting  and,  consequently,  easier  right  along. 

You're  dealing  in  rules  and  laws  that  have  moved  millions  and 
billions  of  dollars  from  one  man,  or  group  of  men,  to  another. 

You're  arming  yourself  by  study  with  years  of  experience  that 
your  elders  have  had  to  gain  from  a  life-time  of  hard  knocks. 

You're  acquiring  the  very  things  that  put  your  superiors  over  you. 

You're  applying  the  things  you  learn  in  everyday  tasks — you're 
adding  new  zest  to  your  daily  work,  putting  new  color  in  your 
occupation,  brightening  your  business  horizon,  and  opening  up 
roads  you  never  dreamed  existed. 

In  the  Business  Administration  Course  and  Service  you  will 
find  the  easiest,  quickest,  and  most  direct  way  to  the  most  desirable 
executive  positions. 


LaSalle  Extension  University  7 

Business  Leadership— Its  Demands 

What  do  the  executives  and  business  leaders  of  America  give 
in  return  for  the  enormous  salaries  they  draw  ? 

Why  are  they  paid  sums  ranging  from  five  thousand  to  a  hundred 
thousand  dollars  a  year? 

The  man  at  the  head  of  a  department  or  a  business  could  never 
in  the  wide,  wide  world  earn  his  salary  by  doing  detail  work. 

His  earning  is  based  on  his  ability  to  give  right  decisions  and 
proper  instructions. 

And  this  ability — "executive  ability,"  it  is  called — is  based  on 
one  thing — knowledge. 

To  be  the  head  of  a  department  you  must  know  that  branch  of 
the  business  and  its  relation  to  and  effect  on  the  other  branches. 

To  be  the  head  of  a  business  you  must  know  all  departments — 
be  capable  of  passing  on  the  efficiency  of  your  department  heads 
and  their  methods — be  able  to  make  suggestions  and  give  instruc- 
tions for  betterment.  And  to  this  specialized  knowledge  you  must 
add  a  broad,  overhead  understanding  of  organization  and  finance. 

The  above  broadly  outlines  the  essentials.  All  departments  and 
branches  of  a  business  are  so  interlocked  in  their  relations  that,  like 
a  file  of  soldiers  marching,  they  must  move  in  harmony,  each  man 
in  step,  or  the  whole  line  is  thrown  into  confusion  and  disorder. 

Up  to  the  time  the  Business  Administration  Course  and  Service 

was  evolved,  no  clear  and  connected  analysis  of  all  the  specific 
principles  of  individual  departments  of  business  as  well  as  the 
overhead  or  governing  fundamentals  had  ever  been  put  on  paper. 

Today  in  the  Business  Administration  Course  and  Service  we 

have  a  living,  breathing,  thorough,  systematic  course  of  instruction 
in  the  application  of  established  principles  to  modern  business. 

It  is  a  guide  that  properly  used  lifts  men  from  any  rank  to  the 
one  above. 

It  takes  off  the  "  lack-of-knowledge  handicap"  and  gives  you  the 
benefit  of  years  of  experience. 


"Opportunities  present 
themselves  and  they  must  be 
grasped.  An  hour's  delibera- 
tion and  they  are    gone." 


Geo.  M.  Reynolds, 


President,  Continental  &  Commercial 
National  Bank  of  Chicago 


LaSalle  Extension  University  9 

The  Business  Administration  Course  and  Service 
Its  Aim,  Scope,  and  Plan 

Building  Executive  Power 

That  in  a  word  is  the  aim  of  the  Business  Administra- 
tion Course  and  Service. 

Can  it  be  done? 

A  reading  of  the  following  pages  will  not  only  prove 
conclusively  to  you  that  it  can  be  and  is  being  done,  but 
will  also  show  you  in  a  very  clear  and  definite  way  just  how 
it  is  done. 

Business  Leadership 

It  is  a  well-known  fact  among  informed  business  men 
that  leadership  in  modern  business  requires  a  degree  of 
brains,  broad  knowledge,  and  accurate  training  never  before 
required.    Haphazard  business  methods  spell  ruin. 

The  man  who  can  successfully  plan,  direct,  and  execute  at 
the  head  of  the  great  business  institutions  of  today,  requires 
a  mind,  training,  and  personal  power  not  excelled  by  the 
leaders  in  any  of  the  learned  professions ;  in  fact,  we  often 
speak  nowadays  of  the  "profession  of  business." 

The  big  problem  of  modern  business  is  how  to  train  and 
develop  men  to  fill  the  higher  positions.  Our  public  schools 
and  technical  high  schools  in  increasing  numbers,  business 
colleges,  and  apprentice  systems  are  fast  filling  the  ranks  of 
clerks,  bookkeepers,  and  mechanics  with  trained  specialists. 
Competition  for  these  positions  is  becoming  keener  and 
keener.  At  the  same  time  as  business  is  being  conducted  in 
larger  and  larger  units,  we  become  more  and  more  aware 
that  these  systems  of  training  do  not  solve  the  problem  of 
securing  efficiency  in  the  higher  positions  of  management. 

The  need  of  the  hour  in  modern  business  is  some 
practical  plan  by  which  men  may  better  prepare 
themselves  for  executive  and  managerial  positions. 
The  Business  Administration  Course  and  Service  has 
been  prepared  to  meet  that  problem  as  it  has  never 
been  met  before.  It  commands  the  attention  of  men 
because  clearly  it  is  appropriate  to  the  needs  and  in- 
terests of  modern  business. 


10  Business  Administration 

How  to  Acquire  Business  Training 

Is  there  any  more  reason  why  a  man  should  study  law 
to  become  a  lawyer  than  for  him  to  study  business  if  he 
expects  to  become  a  successful  business  man? 

It  stands  to  reason  that  no  such  exception  can  be  made. 

How  does  a  doctor  or  lawyer  prepare  himself? 

By  consulting  the  accumulated  knowledge  which  per- 
tains to  his  profession  and  by  mastering  the  fundamental 
principles  underlying  it.  Society  demands  at  least  this 
minimum  training  before  these  men  are  even  allowed  to 
practice  their  professions. 

The  business  world  is  beginning  to  demand  the  same 
thing.  Of  every  candidate  for  business  honors  it  asks : 
"What  knowledge  and  training  have  you!" 

Broad  vs.   Narrow  Training 

Specialization  in  the  industrial  world  responds  to  the 
same  general  tendencies  as  in  nature.  The  blade  of  grass 
grows  up  quickly  to  maturity,  but  specializes  altogether  in 
leaf.  The  sturdy  oak,  on  the  other  hand,  by  long  years  of 
growth  builds  up  a  strong  trunk  capable  of  supporting 
thousands  of  leaves.  The  end  is  the  same:  It  must  spe- 
cialize in  leaves.  But  notice  what  a  difference  the  trunk 
makes. 

There  is  your  application  to  the  specialization  of  a 
bookkeeper  as  compared  with  that  of  an  industrial  manager 
in  a  great  industry. 

The  Business  Administration  Course  and  Service 
aims  to  develop  a  strong,  hearty,  robust  trunk  in  the 
life  of  a  business  man  so  as  to  enable  him  to  support 
and  direct  thousands  of  men  rather  than  one. 

It  has  been  developed  to  meet  the  ever-increasing 
demand  for  organized  business  knowledge. 

It  presents  in  an  interesting,  concise,  understand- 
able manner  the  fundamental  and  basic  principles 
upon  which  a  successful  business  or  business  career 
is  founded,  conducted,  and  maintained. 


LaSalle  Extension  University  11 

Benefits  to  the  Executive 

Power  in  Management 

The  executive,  by  means  of  this  organized  business 
knowledge,  gains  a  broader  view  of  business  control  and 
operation,  strengthens  his  business  foresight,  assumes 
greater  initiative,  and  is  enabled  to  make  better  use  of  the 
talent  and  machinery  at  his  disposal. 

He  is  better  able  to  discuss  on  even  terms  the  de- 
tails of  every  department  with  the  head  of  the  de- 
partment, each  a  specialist  and  an  authority  in  his 
particular  field  of  endeavor. 

He  is  fitted  to  enter  a  meeting  of  the  directors, 
knowing  that  at  every  point  his  will  and  word  will 
be  the  guiding  influence  and  that  his  policies, 
broad-minded,  comprehensive,  and  sanely  organ- 
ized, will  be  both  respected  and  adopted. 

He  can  offer  a  ready  and  practical  solution  of  any 
problem  likely  to  present  itself. 

All  this  will  give  him  greater  confidence  in  his  judg- 
ments. 

Knowledge  of  Principles 

Wouldn't  the  accumulated  business  knowledge  of  the 
best  business  men  of  the  country,  telling  in  each  case  why 
and  how  they  did  it,  be  a  wonderful  asset  to  any  business 
man,  no  matter  how  thoroughly  he  understands  his  own 
business  or  how  successful  he  may  be? 

That  is  just  what  the  Business  Administration  Course 
and  Service  furnishes. 

But  it  does  not  stop  there.  Out  of  these  combined  ex- 
periences brainy,  thoughtful  men  have  evolved  business 
laws — general  principles,  which  have  universal  applica- 
tion. Obviously  it  is  these  laws  of  business  in  which  the 
business  man  is  most  interested.  He  can  no  more  afford 
to  disregard  their  operation  than  a  chemist  can  disregard 
the  laws  of  chemistry.    They  are  indispensable  to  success. 

In  the  Business  Administration  Course  and  Service,  ex- 
ecutives and  managers  will  find  a  clear  analysis  of  all  these 
principles  together  with  an  explanation  of  their  concrete 
application. 


12  Business  Administration 

Benefits  to  the  Young  Man 

Broad  Business  Training 

The  young  man  aspiring  to  become  an  executive  may 
find  in  this  Business  Administration  Course  and  Service 
the  vehicle  that  will  carry  him  along"  the  right  road  to  suc- 
cess. 

In  this  course  and  service  are  laid  before  you  the 
proved  principles  which  absolutely  govern  the  success- 
ful start  and  conduct  of  a  business  and  a  business  career. 

Let  us  assume  that  you  aspire  to  an  executive  business 
position.  Obviously  you  must  have  both  executive  ability 
and  broad  business  training.  For  the  acquirement  of  both  of 
these  qualifications  it  is  not  necessary  for  you  to  strive  alone 
and  unaided  to  find  out  exactly  what  the  leaders  of  the 
business  world  have  already  learned  by  experience.  They 
have  illumined  the  blind  alleys  in  business  with  demon- 
strated methods  of  success. 

You  need  no  longer  spend  your  best  years  in  factory, 
office,  or  store,  losing  opportunities,  while  you  are  learning 
business  methods  and  developing  your  abilities  to  assume 
business  leadership.  The  old  apprentice  and  experience 
system  is  too  wasteful ;  it  is  not  economical. 

More  Rapid  Progress 

In  fact,  the  experience  gained  today  from  years  of 
service  in  a  large  organization  does  not  fit  a  man  for  execu- 
tive positions.  Even  though  your  father  worked  from  the 
bottom  up,  what  chance  have  you?  Likely  he  began  in  an 
organization  with  ten  men  or  less.  You  are  living  in  an 
age  where  there  are  hundreds  and  thousands  of  men  in  an 
organization.  Your  chance  of  being  recognized  for  your 
superior  ability  is  about  one-tenth  or  one-hundredth  as  good 
as  in  former  days,  to  say  nothing  of  being  prepared  for  an 
executive  position. 

The  smattering  of  business  knowledge  gained  through 
experience  no  longer  suffices  in  this  age  when  the  ranks  of 
business  are  rapidly  being  filled  with  men  of  trained  busi- 
ness minds.  The  Business  Administration  Course  and 
Service  shows  you  how  you  can  spend  your  time  in  doing, 
while  others  are  merely  preparing. 

It  is  truly  the  service  which  bridges  the  twenty - 
year  gap. 


LaSalle  Extension  University  13 

Why  Broad  and  Inclusive 

The  importance  of  this  broad  foundation  of  the  course 
and  service  consists  in  the  fact  that  the  mental  equipment 
of  the  successful  business  man  of  today  can  hardly  be  too 
complete.  The  amount  of  information  required  for  the 
proper  conduct  of  his  business  exceeds  that  required  by  the 
business  man  of  any  other  age.  His  information  must  be 
concise,  accurate,  well  organized,  and  must  cover  a  wide 
range.  This  course  takes  a  man  beyond  the  half-way  suc- 
cess point. 

The  basic  principles  involved  in  each  branch  of  this 
course  and  service  are  alike  in  all  industries.  They  involve 
fundamental  laws  of  general  application. 

Short  Cuts 

Ten  years  of  effort  and  millions  of  dollars  dug  the 
Panama  Canal.  Today  ships  passing  through  it  are  cutting 
many  days  from  their  sailing  time  and  are  saving  their 
owners  thousands  of  dollars.  The  future  saving  to  the 
world's  commerce  will  repay  the  original  cost  many  times. 

So  it  is  with  this  Business  Administration  Course  and 
Service.  It  presents  short  cuts  to  business  success.  The 
business  experts  who  have  prepared  this  course  and  service 
dug  right  through  obstacles  that  to  many  business  men 
seem  as  insurmountable  as  the  Isthmus  of  Panama  did  to 
an  ocean  liner  before  the  canal  was  cut  through  the  barrier. 

The  original  work  of  discovery  and  construction  is  hard. 
DeLesseps  failed  in  his  efforts  to  build  the  Panama  Canal. 
American  engineering  genius  plus  American  enterprise 
completed  the  work.  Now  it  is  open  to  the  commerce  of  the 
world. 

Likewise  the  minds  of  our  greatest  business  experts 
have  given  to  the  world  in  this  Business  Administration 
Course  and  Service  short  cuts  to  business  success. 

Do  you  begin  to  see  why  the  Business  Administration 
service  is  so  tremendously  important  and  why  it  is  to  your 
interest  to  get  the  full  benefit  of  this  valuable  information 
and  service? 


14  Business  Administration 

The  Subject-Matter  of  the  Course  and  Service 

The  Business  Administration  Course  and  Service  com- 
prises a  broad,  thorough,  and  systematic  course  of  instruc- 
tion and  service  in  the  application  of  established  principles 
to  modern  business,  for  the  guidance  of  executives  and  men 
seeking  executive  positions  in  the  business  world.  It 
includes  the  most  important  and  fundamental  subjects 
which  a  broad-minded  business  man  is  likely  to  use  in  the 
solution  of  his  everyday  business  problems. 

The  subject-matter  of  the  Business  Administration 
service  is  divided  for  convenience  into  eighteen  different 
sections,  as  follows : 

1.  Personal  Efficiency,  Applied  Salesmanship, 
and  Sales  Administration 
<2.  Business  Psychology 
3.  Business  English 
1±.  Business  Law 

5.  Business  Economics 

6.  Industrial  Organization  and  Management 
7.  Money  and  Banking 
8.  Investments  and  Speculation 
9.  Organizing  a  Business 
10.  Financing  a  Business 
11.  Advertising 

12.  Bet  ail  Merchandising 
13.  Credits 

14.  Collections 

15.  Transportation  and  Traffic 
16.  Ocean  Traffic  and  Trade 
17.  Accounting 

18.  Office  Management 

This  organization  gives  a  comprehensive  course  and 
service.  There  is  nothing  cramped  or  limited  in  its  con- 
ception. Every  section  is  important;  no  essential  subject 
has  been  omitted.  Consider  for  a  moment  the  multifarious 
activities  of  the  United  States  Steel  Corporation,  or  of  the 
Marshall  Field  stores,  or  of  any  fair-sized  business  in  your 
own  community.  Is  not  the  business  manager  called  upon 
to  pass  judgment  on  every  one  of  these  subjects?  Each 
is  a  link  in  the  chain  of  business  operations. 


LaSalle  Extension  University  15 

Organization  of  the  Course  and  Service 

Organization  makes  for  efficient  work  in  training  as 
well  as  in  business.  No  haphazard  collection  or  arrange- 
ment of  the  subject-matter  of  this  service  would  be  effective. 
Friction  would  kill  the  service  as  surely  as  it  wears  out  a 
disjointed  machine. 

Before  reading  about  the  detailed  plan  of  the  course 
you  should  grasp  it  as  a  unit.  The  effective  and  logical 
organization  of  this  course,  as  well  as  its  practical  relation- 
ship to  business  problems,  is  here  presented.  Observe  the 
systematic  organization  and  orderly  development  of  the 
whole  service  into  such  groups  of  subjects  as  relate  to  busi- 
ness and  personal  efficiency. 

The  Personal  Efficiency  Group 

The  Business  Administration  Course  and  Service  begins 
with  the  Personal  Efficiency  group.  Since  individual  abil- 
ity is  the  secret  of  all  success,  clearly  the  development  of 
individual  power  should  receive  first  attention.  That  is 
the  object  of  the  Personal  Efficiency  group.  It  includes 
Business  Psychology,  Business  English,  Business  Law,  and 
Business  Economics.  These  subjects  take  up  the  problem 
of  mental  efficiency,  effective  expression,  a  knowledge  of 
legal  rights,  and  an  understanding  of  fundamental  business 
principles. 

The  Business  Organization  and  Management  Group 

The  next  group  takes  up  the  Business  Organization  and 
Management  problems  of  industry.  It  includes  the  subjects 
of  Organizing  a  Business,  Industrial  Organization,  and  In- 
dustrial Management.  Since  organization  and  management 
are  fundamental  in  the  administration  of  all  business  en- 
terprises, these  subjects  should,  of  course,  be  particularly 
strong  and  practical. 

The  Finance  Group 

One  of  the  biggest  problems  that  confronts  a  business 
man  is  that  of  financing  his  business.  Bradstreet's  figures 
show  that  by  far  the  most  prevalent  single  cause  of  business 
failures  is  that  which  grows  out  of  ignorance  of  finance. 
This  subject  is  presented  in  the  sections  on  Financing  a 
Business,  Money  and  Banking,  and  Investments  and  Spec- 
ulation. 


16  Business  Administration 

The  Marketing  and  Distribution  Group 

The  profitable  marketing  and  distribution  of  goods  is 
one  of  the  greatest  problems  of  modern  business.  Econ- 
omists and  well-informed  business  men  tell  us  that  the  most 
difficult  problem  today  is  not  production,  but  distribution. 
Accordingly  this  important  topic  is  ably  presented  in  the 
subjects  of  Advertising,  Personal  Efficiency,  Applied  Sales- 
manship, Sales  Administration,  Retail  Store  Management, 
Credits,  and  Collections. 

The  Transportation  and  Traffic  Group 

The  transportation  business  is  one  of  the  biggest  enter- 
prises of  the  country.  The  business  man  is  tremendously 
interested  in  his  freight  charges  and  the  agencies  through 
which  his  goods  are  distributed.  This  group  takes  up 
Transportation  and  Traffic,  and  Ocean  Traffic  and  Trade, 
covering  the  transportation  problem  on  both  land  and  sea. 

The  Accounting  and  Office  Management  Group 

A  final  group  of  business  activities  has  to  do  with  the 
recording  and  proper  accounting  of  all  business  activities, 
whether  they  are  production,  financing,  or  marketing.  In 
this  Accounting  and  Office  Management  group  the  subjects 
of  Accounting  and  Office  Management  are  presented. 

Thus  the  circle  of  business  knowledge  is  completed.  It 
is  logical,  orderly,  and  comprehensive.  Because  of  the 
perfect  organization  of  this  service  we  speak  of  it  as  a  body 

Of  ORGANIZED  BUSINESS   KNOWLEDGE. 


"After  forty  years  of  experience,"  says  Adolplms  C.  Bartlett, 
President  of  the  Hibbard,  Spencer,  Bartlett  &  Company,  Whole- 
sale Hardware,  Chicago,  "I  am  convinced  that  success  in  business 
depends  not  only  on  natural  ability,  but  on  thorough  preparation 
and  training  in  improved  systems  and  exact  methods." 

This  observation  is  especially  important  now  that  the  Business 
Administration  Course  and  Service  affords  an  opportunity  to  all 
business  men  to  get  more  exact  information  about  organization 
and  methods  of  administration. 


LaSalle  Extension  University  17 


"v^ 


; 


The  Keys  That  Open  Every  Door 

The  man  who  regards  the   Business    Administration  Course 

and  Service  as  an  extremely  valuable  set  of  text-books  plus  sup- 
plemental business  efficiency  lectures,  practical  problems,  etc.,  is 
wrong. 

It  is  more — it  represents  the  keys  that  open  every  door  of  busi- 
ness in  all  its  branches. 

And  the   Business  Administration  Course  and  Service  as  a 

whole  opens  the  door  of  any  business  to  the  ambitious  man. 

And  at  your  elbow — at  your  beck  and  call — are  the  minds  of 
men  who  will  show  you  how,  where  a  question  arises,  by  solving 
the  problem  for  you. 

And  their  solution  of  one  problem,  their  answer  to  one  question, 
their  co-operation  in  one  instance  may  be  worth  the  cost  of  the 
service  one  hundred  times  over. 


18  Business  Administration 

What  You  Receive 

The  Business  Administration  Course  and  Service  of 
the  LaSalle  Extension  University  consists  of  three  distinct 
divisions :  * 

1.  The  Business  'Training  Coarse,  consisting  of  the  following: 

(a)  The  Business  Administration  Texts 

( b )  The  Business  Efficiency  Lectures 

( c )  The  Business-Building  Talks 

( d )  The  Business  Efficiency  Problems 

2.  The  Business  Bulletin  Service 

3.  The  Consulting  Service 

Each  of  these  three  features  fulfills  an  important  func- 
tion in  the  organization  of  the  Business  Administration 
Course  and  Service.  Each  part  supplements  the  others  and 
is  indispensable  to  the  unity  and  completeness  of  the  whole. 

Now  you  have  thoroughly  fixed  in  your  mind  the  general 
organization  of  the  course  and  service.  You  are  ready  to 
consider  the  service  of  each  division  separately.  That 
information  is  given  in  the  following  pages. 

Before,  however,  you  read  the  explanations  of  each  fea- 
ture of  this  course  and  service,  review  once  more  what  you 
receive,  as  outlined  above.  The  careful  organization  of 
the  service  accounts  for  its  usefulness  and  success. 


*  Some   of   this   material   is    at   this    date    (April,    1915)    still   in    the   process 
of  development  and   is   subject   to  minor  changes. 


"Business  Administration  is  the  ability  to  keep  a  business  in 
balance;  the  knowledge  to  employ  men,  money,  and  service;  to 
have  such  a  wide  scope  of  commercial  knowledge  that  action  can 
be  immediate  and  will  not  be  retarded  because  of  the  failure  to 
recognize  just  the  action  necessary  to  keep  the  business  both  in 
proper  balance  and  in  the  ascendency." 


LaSalle  Extension  University  19 

The  Text-Books 

Their  Make-Up 

The  basis  for  the  organization  of  the  Business  Admin- 
istration service  is  a  set  of  text-books  npon  the  eighteen 
subjects  comprising  the  fundamentals  of  organized  busi- 
ness knowledge.  Each  book  is  printed  with  clear  type  on 
strong  paper  and  is  neatly  bound  in  limp  leather  binding. 
Nothing  has  been  overlooked  to  increase  their  service  and 
durability  or  to  heighten  one's  pride  in  their  possession. 

In  these  books  the  practical  experiences  of  the 
keenest  business  and  professional  minds  of  the  world 
have  been  collected,  analyzed,  and  reduced  to  work- 
ing principles  by  recognized  experts  in  their  respect- 
ive fields. 

The  result  is  a  masterly  development  of  those  business 
laws  that  underly  the  successful  conduct  of  modern  busi- 
ness. These  text-books  bring  to  your  own  work  and  serv- 
ice these  fundamental  business  principles  and  facts. 

Special  attention  has  been  given  to  the  method  of  pres- 
entation; so  the  books  are  not  only  authoritative,  but  un- 
derstandable as  well.  Every  principle  in  each  of  these 
different  and  important  subjects  is  developed  with  the  ut- 
most clearness,  always  with  an  eye  to  practical  application. 

Their  Value 

We  have  no  hesitation  in  claiming  that  these  works  are  the 
best-written,  most  practical,  most  comprehensive,  and  most 
authoritative  business  books  ever  published.  As  a  basis 
for  business  knowledge  and  as  practical  reference  works 
for  daily  use,  they  hold  a  place  distinctly  their  own. 

When  you  have  become  fully  acquainted  with  the  nature 
and  organization  of  the  Business  Administration  Course 
and  Service,  then  read  the  more  detailed  description  of 
these  works. 

In  those  descriptions  you  will  find  a  careful  analysis  of 
each  subject  as  well  as  a  more  detailed  explanation  of  the 
practical  application  of  each  to  actual  business  situations. 

The  completeness  and  practicality  of  these  works  appeals 
to  the  actual  needs  of  business. 


20  Business  Administration 

Business  Efficiency  Lectures 

What  They  Are 

Once  every  month  for  two  years  you  receive  as  a  part  of 
your  service  a  neatly  bound  and  printed  lecture  on  a  prac- 
tical and  up-to-date  business  problem.  These  lectures  have 
been  prepared  for  this  service  of  the  LaSalle  Extension 
University  by  genuine  " doers"  in  the  field  of  business. 
They  keep  you  in  touch  with  the  best  experiences  and  most 
recent  thought  in  business. 

What  does  it  mean  to  you  to  be  able  to  utilize  in  your 
everyday  work  the  business-getting  ideas,  the  efficiency 
systems,  the  organizing  methods,  the  trade-building  strate- 
gies, and  the  productive  ideas  of  big  business  geniuses  and 
highly  successful  concerns! 

That  is  the  value  of  these  lectures.  They  are  the  work 
of  acknowledged  experts  in  the  problems  which  they  treat. 
They  enable  you  to  meet  a  larger  number  of  big  men  and 
big  ideas  from  the  business  world. 

This  service  is  furnished  to  you  in  such  convenient  form 
that  you  can  take  it  with  you  to  investigate  during  your 
spare  moments  in  your  home,  on  the  car,  at  the  club,  or  in 
the  office. 

Some  of  the  Lectures 

We  revise  the  list  of  these  lectures  from  time  to  time. 
At  present  the  number  includes  discussions  on  such  im- 
portant issues  as : 

The  Regulation  of  Corporations 

The  Job  and  The  Man 

Manufacturing  Organization 

Handling  Collections 

Fire  Insurance 

The  Consular  Service  and  the  Foreign  Trade 

Real  Estate 

Requisites  of  the  Efficient  Audit 

The  Fundamental  Truth  of  Scientific  Management 

Business  Administration  as  a  Constructive  Science 

Transportation  in  the  United  States 

Reducing  Freight  Charges  to  a  Minimum 

Investment  Services 

The  Industrial .  Traffic  Bureau 

The  Committee  System  of  Management 


LaSalle  Extension  University  21 

Some  of  the  Lecture  Writers  for  the  Service 

Honorable  Theodore  E.  Burton,  United  States  Senator 
from  Ohio;  Author  of  Corporations  and  the  State. 

Henry  Clews,  LL.  D.,  New  York  Financier;  Author  of 
Fifty  Years  in  Wall  Street  and  The  Wall  Street  Point 
of  View. 

J.  H.  McAdow,  Secretary  and  Treasurer,  Staver  Carriage 
Company,  Chicago;  Former  President,  National  Asso- 
ciation of  Credit  Men. 

Walter  D.  Moody,  Former  General  Manager,  Chicago 
Association  of  Commerce;  Secretary,  Chicago  Plans 
Commission. 

Samuel  MacClintock,  Ph.  D.,  Formerly  of  the  American 
Consular  Service,  Chicago. 

Downer  McCord,  A.  B.,  LL.  B.,  of  J.  C.  McCord  &  Com- 
pany, Real  Estate,  Chicago. 

Emory  P.  Johnson,  Ph.  D.,  Sc.  D.,  Professor  of  Transpor- 
tation and  Commerce,  University  of  Pennsylvania; 
Member,  Pennsylvania  Public  Service  Commission. 

Louis  D.  Brandeis,  of  Brandeis,  Dunbar  &  Nutter,  Boston; 
Authority  on  Scientific  Management  and  Railroad 
Pates. 

Harrington  Emerson,  President,  Emerson  Company,  New 
York;  Author  of  The  Twelve  Principles  of  Efficiency. 

Warren  F.  Hickernell,  Editor,  Brookmire  Economic 
Service,  St.  Louis,  Missouri. 

K.  M.  H.  Blackford,  M.  D.,  Author  of  The  Job,  The  Man, 
The  Boss;  Originator  of  the  Blackford  Employment 
Plan  and  the  Observational  Method  of  Character  Analy- 
sis. 

J.  F.  Strombeck,  B.  S.,  President,  Strombeck-Becker  Man- 
ufacturing Company,  Moline,  Illinois. 

C.  U.  Carpenter,  President,  Fire-Proof  Furniture  and  Con- 
struction Company,  Miamisburg,  Ohio ;  Author  of  Profit 
Making  in  Shop  and  Factory  Management. 


22  Business  Administration 

Business-Building  Talks 

During  the  two  years  of  your  enrollment  in  the  Busi- 
ness Administration  Course  and  Service  we  shall  furnish 
you  regularly  with  our  Business-Building  Talks,  giving 
helpful  hints  to  assist  in  the  practical  application  of  all  the 
information  and  benefits  of  this  service. 

These  talks  bear  directly  upon  a  limited  section  of  the 
course  and  service.  They  emphasize  the  important  parts  of 
the  assignment  which  they  cover,  show  the  concrete  appli- 
cation of  the  work  to  actual  business  situations,  present 
for  your  consideration  new  angles  to  many  questions,  and 
in  general  aim  to  be  interesting,  helpful,  and  mentally  stim- 
ulating. 

A  further  object  of  these  talks  is  to  assist  you  directly 
in  the  systematic  use  of  all  the  material  of  this  service.  It 
is  the  task  idea  applied  to  this  work. 

These  Business-Building  Talks  have  been  made  so  in- 
teresting and  stimulating  and  show  so  clearly  the  benefits 
to  be  derived  from  an  intensive  reading  and  a  mastery  of 
all  the  material  which  is  included  that  we  hope  you  will 
be  induced  to  use  the  service  not  only  for  the  solution  of 
problems  as  they  arise,  but  as  a  means  of  increasing  your 
grasp  of  business  fundamentals  as  well. 

We  try  to  make  you  realize  in  a  big  sense  that  per- 
sonal business  power,  the  gift  to  make  quick,  accurate,  and 
decisive  decisions — that  supreme  gift  of  executive  genius 
— is  the  result  of  close  personal  application  and  a  mastery 
of  business  principles. 


Hazy,  indefinite,  and  impractical  ideals  make  a  man  inefficient, 
useless. 

Definite,  workable  ideals,  backed  with  human  energy,  make  a 
man  efficient — place  him  on  the  road  to  success.  And  the  higher 
the  ideals  the  better. 

The  right  kind  of  ideals  are  the  most  useful  and  practical 
things  in  the  world. 


LaSalle  Extension  University  23 

Business  Efficiency  Problems 

The  problem  method  of  meeting  situations  is  used 
wherever  possible  throughout  the  service.  With  every  sec- 
tion of  the  service  at  least  one  practical  Business  Efficiency 
Problem  is  submitted  to  you  for  your  consideration  and 
solution. 

In  these  problems  a  set  of  facts  drawn  from  business  life 
and  representing  the  details  of  actual  business  situations 
is  proposed  and  you  are  asked  to  outline  a  definite  plan 
of  procedure.  These  problems  are  of  exactly  the  same 
nature  as  those  that  a  business  executive  is  called  upon  to 
solve  regularly  in  the  course  of  his  own  work  or  as  are 
found  in  the  reports  of  subordinates,  customers,  and  clients. 
It  is  here  that  you  attack  and  conquer  the  actual  vital  prob- 
lems of  business  life. 

As  you  progress  with  this  service,  you  are  regularly 
given  an  opportunity  to  solve  exactly  the  same  kind  of  prob- 
lems that  the  business  organizer,  the  banker,  the  advertis- 
ing manager,  or  accountant  is  called  upon  to  solve  daily 
in  the  course  of  actual  business  transactions. 

The  ability  to  solve  quickly,  accurately,  and  finally 
the  unexpected  problems  that  arise  in  the  course 
of  business  is  after  all  the  final  test  of  true  executive 
ability. 

The  solution  of  these  problems  fits  a  man  for  the  high- 
est positions  of  executive  responsibility.  We  urge  that  you 
test  your  ability  by  solving  these  problems  and  sending 
their  solutions  to  our  Business  Administration  Department. 
There  the  solutions  will  be  considered  by  experts  in  the 
respective  fields  of  business  administration  and  helpful 
suggestions  will  be  made  for  your  benefit.  With  your  co-op- 
eration, this  feature  of  the  course  may  be  made  very  helpful. 


Andrew  Carnegie's  Rules 
No  sharp  bargains — do  more,  not  less  than  promised. 

If  disputes  arise  always  give  the  other  party  the  benefit  of 
the  doubt. 


24  Business  Administration 

Monthly  Business  Bulletins 

The  Monthly  Business  Bulletins  constitute  an  impor- 
tant part  of  the  service  which  you  receive  for  a  period  of 
two  years  from  the  date  of  your  subscription  to  the  Busi- 
ness Administration  Course  and  Service.  The  object  of 
these  bulletins  is  to  furnish  prompt,  accurate,  and  reliable 
information  upon  fundamental  business  conditions  as  they 
exist  from  month  to  month. 

Business  is  a  progressive  science.  The  forces  and  laws 
which  shape  its  course  are  continually  changing,  often  in 
the  most  unexpected  manner.  The  great  war  of  1914  could 
not  have  been  certainly  predicted  even  one  month  before 
its  actual  outbreak,  much  less  could  its  effects  have  been 
foretold.  Such  events  shake  the  very  superstructure  of 
business  and  call  for  intelligent  adjustment  along  all  lines. 
Even  during  normal  times,  business  conditions  are  in  a  con- 
tinual flux. 

No  business  administration  service  in  its  entirety  can, 
therefore,  be  presented  in  any  one  book  or  set  of  books, 
however  accurate,  complete,  and  authoritative  they  may  be. 
Those  business-shaping  forces  which  grip  the  very  vitals 
of  business  are  always  at  work  and  always  changing.  It 
is  absolutely  essential  that  you  understand  and  follow  these 
current  business  movements  in  order  that  you  may  apply 
to  your  utmost  advantage  the  business  knowledge  acquired 
in  the  remainder  of  the  service. 

The  LaSalle  service,  through  these  business  bulle- 
tins, supplies  you  with  the  most  important  develop- 
ments in  business,  politics,  banking,  investments,  the 
trend  in  security  prices,  crop  conditions  and  prices, 
commodity  prices,  home  and  foreign  trade,  and  other 
factors  that  may  be  considered  as  barometers  of 
trade.  The  individual  and  resultant  influence  of 
these  several  factors  on  business  tendencies  ivill  be 
clearly  traced  ivith  the  idea  of  assisting  business  men 
to  steer  along  safe  lines  in  accordance  with  actual 
economic  conditions. 


"Education  is  capital  to  a  poor  man  and  interest  to  a  rich 
man. ' ' — Horace  Mann. 


LaSalle  Extension  University  25 

Extracts  From  the  Bulletin  Service 

What  About  That  Investment? 

The  Investor:  "Is  this  an  opportune  time  to  invest  in  high  grade 
bonds  or  place  loans  on  mortgages  V 

The  Executive  and  Financier:  "Is  this  a  favorable  time  to  undertake 
permanent  financings  in  my  business  or  should  I  attempt  to  tide  over 
with  short  term  notes'?" 

In  either  case  the  probable  trend  of  interest  rates  is  of  the  greatest 
importance.  John  Moody,  of  New  York,  recently  prepared  an  investment 
letter  in  which  he  directly  controverts  the  theory  generally  held  that  we  are 
facing  a  period  of  continued  high  interest  rates.  His  argument  presumes 
to  be  based  upon  the  law  of  supply  and  demand.  Demand  for  capital,  so 
he  reasons,  will  not  increase  in  Europe  after  the  war,  but  will  decline, 
and  far  more  than  the  supply.  On  account  of  the  impoverished  condition 
of  the  nations  now  at  war,  people  everywhere  will  buy  less,  and  conse- 
quently producer,  dealer,  and  transporter  will  have  less  to  do.  Along 
the  same  line  he  concludes  that  the  demand  for  commodities  will  be  less 
and  that  prices  will  be  lower  accordingly.  The  high  cost  of  living,  he 
believes,  will  decline  sharply  once  the  war  is  over. 

This  proposition  is  of  tremendous  interest  to  Wall  Street  and  to  all 
bankers,  investors,  and  financial  institutions,  for  on  it  absolutely  depends 
the  course  of  security  prices  in  the  near  future.  If  there  is  to  be  a  sus- 
tained demand  for  capital,  then  bond  prices  are  likely  to  decline  yet  more, 
and  a  person  would  be  foolish  to  purchase  even  the  best  securities  at  the 
prices  now  prevailing.  If,  on  the  other  hand,  Mr.  Moody  is  correct  in  his 
diagnosis,  we  have  immediately  before  us  the  greatest  bargain  opportun- 
ities in  high  grade  bonds  and  securities  that  the  present  generation  is 
likely  to  see. 

Now  what  are  the  facts'?  Are  the  predictions  of  most  of  our  economists, 
statisticians,  and  financiers  to  the  effect  that  high  interest  rates  are  likely 
to  prevail— are  they  wrong,  or  are  Mr.  Moody's  observations  not  well 
founded'?  Does  he  perhaps  reflect  an  unconscious  bias  in  favor  of  a 
"buying  movement"  so  much  desired  by  Wall  Street  financiers  and  stock 
exchange  members'? 

To  be  frank,  we  cannot  concede  that  Mr.  Moody's  conclusions  are 
reasonable.  We  will  all  admit  the  social  impoverishment  that  is  caused 
by  the  war.  It  is  a  factor  that  must  be  adequately  considered  in  all  our 
calculations.  However,  it  seems  to  us  that  Mr.  Moody  has  not  allowed 
sufficiently  for  the  after-war  financing  that  must  take  place  and  continue 
to  make  its  inroads  upon  capital. 

In  the  first  place,  the  large  loans  that  are  being  made  during  the  war 
will  have  to  be  shifted  to  investors  after  the  war  is  over.  This  is  true  in 
all  countries,  even  the  strongest.  The  Bank  of  France  is  making  large 
loans  to  the  French  government.  The  recent  war  loan  of  over  $1,000,- 
000,000  in  Germany  was  taken  by  the  War  Loan  Society,  whose  notes  the 
government  then  exchanged  for  bank  notes  at  the  Bank  of  Germany.  The 
Bank  of  England  is  offering  to  make  loans,  dollar  for  dollar,  to  every 
investor  who  subscribes  to  the  war  securities.  All  of  these  borrowings 
are,  therefore,  virtually  loans  from  the  state  banks  to  the  governments. 
After  the  war  is  over,  many  of  these  loans  will  have  to  be  permanently 


26  Business  Administration 

financed.  In  addition,  heavy  indemnities  of  many  kinds  will  likely  have  to 
be  paid,  thns  continuing  the  borrowing  demands  of  these  governments. 

Over  and  above  these  direct  war  expenses  there  will  be  demands  for 
enormous  reconstruction  costs  for  devastated  countries  and  delayed  enter- 
prises. Not  only  will  this  be  true  in  the  areas  affected  by  the  war,  but 
throughout  the  entire  world.  All  the  neutral  states  have  been  going  through 
a  period  of  liquidation  and  are  now  hungry  for  capital  with  which  to 
finance  a  period  of  expansion  and  development. 

In  our  own  country  about  $800,000,000  worth  of  maturing  securities 
must  be  met  during  the  year  1915.  It  is  difficult  to  tell  what  proportion 
of  these  are  held  abroad,  but  we  know  that  a  large  part  of  them  are  held 
there.  The  European  lender  will  demand  one  of  two  things:  (1)  that  we 
pay  off  our  obligations  to  him  at  par  or  (2)  that  we  renew  them  on  terms 
fully  as  satisfactory  as  he  can  secure  on  his  own  national  bonds.  Be  it 
observed  in  this  connection  that  whatever  benefit  we  expect  to  derive  from 
foreign  liquidation  of  our  own  securities  is  not  going  to  apply  to  maturing 
obligations.    These  will  not  be  sold  to  us  at  a  discount. 

We  shall  have  to  pay  for  them  at  par.  If  there  is  to  be  any  selling  of 
our  foreign  held  securities,  these  maturing  obligations  will  be  the  first  to 
be  thrown  back  upon  our  hands.  Whether  we  pay  the  high  rates  of  in- 
terest sure  to  be  demanded  of  our  foreign  creditors  for  the  renewal  of 
these  loans  or  finance  them  ourselves,  the  interest  rate  on  them  is  likely  to 
be  high. 

We  are  furthermore  called  upon  to  finance  much  of  the  increased  for- 
eign trade  which  we  are  gaining  with  neutral  nations.  Our  large  favorable 
trade  balance  of  the  last  three  months  aids  us  greatly  in  that  task.  The 
Argentine  Republic  just  concluded  a  $15,000,000  loan  with  us  for  this 
purpose.  Canada  could  use  $25,000,000  a  month.  The  Scandinavian 
countries  and  other  neutral  nations  are  making  similar  demands.  Even 
France  has  arranged  for  $10,000,000  credit  on  food  stuffs  and  a  $25,000,000 
loan  for  Russia  is  being  negotiated  with  J.  P.  Morgan  and  Company. 
Such  are  the  necessitous  borrowings  going  on  in  all  parts  of  the  world. 

In  the  face  of  these  demands,  our  own  interest  rates,  to  be  sure,  have 
declined  since  last  August.  The  San  Francisco  Federal  Reserve  Bank  has 
lowered  its  discount  rates  to  4  per  cent.  Everywhere  money  seems  to  be 
available  for  capital  needs.  This  condition  is  explainable  by  the  usual 
abundance  of  capital  at  this  season  of  the  year,  by  the  large  reserves  re- 
leased when  the  federal  reserve  plan  went  into  effect,  and  by  the  decreased 
demands  for  money  caused  by  the  period  of  stagnation  through  which  we 
have  been  passing.  Business  is  now,  however,  reviving.  This  advantage 
will  soon  be  absorbed  and  then  interest  rates  will  adjust  themselves  in  the 
natural  course  of  competition  to  the  rates  available  abroad. 

These  facts  lead  us  to  disagree  with  the  conclusions  of  Mr.  Moody  and 
to  accept  rather  the  conclusions  of  Irving  Fisher  and  the  eminent  Dutch 
economist,  Professor  C.  A.  Verrijn  Stuart,  to  the  effect  that  prices  will 
rise  still  higher  after  the  war;  interest  rates  will  be  high  and  bond  prices 
correspondingly  low.  While  unquestionably  many  very  excellent  invest- 
ment opportunities  may  be  had  at  the  present  time,  it  is  doubtful  if  high 
class  bonds  have  reached  their  lowest  level.  This  seems,  therefore,  to  be  a 
pretty  good  time  to  undertake  permanent  financings  for  sound  business 
enterprises  and,  obversely,  a  good  time  to  keep  some  money  available  for 
the  excellent  investment  opportunities  that  are  likely  to  come  after  the  war. 


LaSalle  Extension  University  27 

Fundamental  Financial  Conditions 

BANK  STATEMENTS-DEPOSITS  AND  LOANS 

The  surplus  reserves  of  the  New  York  banks  and  practically  all  the 
banks  in  the  country  have  continued  to  increase.  The  loan  expansion  of 
the  banks  has  been  relatively  small.  Both  demand  and  time  deposits  in- 
creased considerably.     The  percentage  of  specie  to  loans  is  high.     *     *     * 

All  of  these  conditions  indicate  sound  financial  conditions  in  this 
country.  In  the  absence  of  war  they  would  foretell  great  commercial  ex- 
pansion. 

BANK  CLEARINGS 

Bank  clearings  of  the  past  few  weeks  have  shown  an  increase  over 
those  of  the  closing  weeks  of  1914.  The  decrease  over  the  first  weeks  of 
1914  is  now  only  about  10  per  cent  as  compared  with  30  per  cent  in  the 
fall  of  1914.  Since  bank  clearings  represent  quite  accurately  the  volume 
of  trade,  these  facts  are  an  indication  that  business  is  picking  up  through- 
out the  country.  A  special  feature  to  note  is  the  increase  in  bank  clearings 
in  New  York  City  since  the  opening  of  the  Stock  Exchange.     *     *     * 

INTEREST  RATES 

Interest  rates  are  lower  at  this  time  than  they  have  been  for  many 
months.  The  San  Francisco  Federal  Reserve  Bank  reduced  its  discount 
rate  to  4  per  cent.  Minneapolis,  which  began  with  6V2  per  cent  in  Novem- 
ber, is  down  to  4%  per  cent.     *     *     * 

One  result  of  these  low  interest  rates  is  considerable  activity  in  the 
way  of  permanent  financing.  The  St.  Paul  Railway  System  easily  disposed 
of  its  $29,000,000  new  5  per  cent  debenture  bond  issues.  The  Pennsylvania 
System  is  contemplating  a  $100,000,000  general  mortgage  bond  issue  to 
take  care  of  its  immediate  needs.  The  New  York  Central  will  be  the  next 
to  follow.  There  is  rumor  that  the  New  Haven  is  considering  similar 
action.     Industrial  corporations  are  following  the  same  general  trend. 

This  activity  in  financing  at  this  time  of  the  year  when  money  is  plen- 
tiful seems  to  indicate  that  interest  rates  are  not  likely  to  decrease,  but  to 
increase  in  the  near  future. 

FOREIGN  EXCHANGE 

Demand  sterlings  sold  in  the  New  York  market  during  the  past  week 
at  $4.831/2)  the  lowest  since  1907.  Under  ordinary  conditions  gold  would 
come  in  much  above  that  figure.  Small  shipments  of  gold  have  been  made 
now.  A  $3,000,000  shipment  has  come  from  China,  which  indicates  that 
the  American  dollar  is  beginning  to  take  its  place  in  foreign  exchange. 
It  is  not  likely  that  heavy  gold  shipments  will  take  place  from  France  or 
England.  What  little  does  come  will  probably  be  negotiated  through  the 
Bank  of  Ottawa. 

With  a  trade  balance  accumulating  in  our  favor  at  the  rate  of  about 
$35,000,000  a  week,  the  question  of  how  this  money  is  to  be  paid  to  us 
becomes  a  serious  one.  There  are  only  two  ways  in  which  we  can  get  this 
money:  (1)  by  importation  of  gold;  (2)  by  importation  of  commercial 
values.  Since  gold  cannot  be  had  in  large  quantities  and  there  is  little 
demand  for  more  merchandise,  our  only  alternative  is  to  buy  securities 
or  to  take  up  loans  in  foreign  countries.     Since  American  securities  held 


28  Business  Administration 

abroad  are  somewhat  cheaper  in  the  European  market  than  they  are  here, 
it  is  likely  that  much  of  our  surplus  will  be  used  to  buy  back  these  securi- 
ties. This  buying  will  tend  to  raise  prices  abroad  and  keep  our  own  prices 
1'rom  advancing  as  rapidly  as  they  would  if  gold  could  be  imported. 

The  Security  Market 

STOCKS 

The  first  three  weeks  of  January  have  shown  considerable  activity  and 
fairly  good  prices  on  the  stock  market.  The  third  week  showed  some 
slackening  up  in  improvement  of  the  market,  but  not  more  than  was  to 
be  expected  in  the  ordinary  course  of  events.  Some  specialty  stocks 
showed  marked  improvement,  as,  for  example,  the  Willys- Overland  Com- 
pany. United  States  Steel  common  showed  slight  gain,  largely  on  the 
strength  of  the  increase  of  about  500,000  tons  in  unfilled  orders  during 
the  preceding  month,  but  is  still  a  very  speculative  stock.     *     *     * 

BONDS 

The  bond  market  has  been  fairly  active  during  the  first  three  weeks 
of  the  year,  but  already  shows  a  decrease  in  transactions  of  practically 
$1,000,000,000  over  those  of  1914.  The  decrease  of  transactions  is  slightly 
larger  than  it  has  been  in  the  stock  market.  Financings  that  are  in  im- 
mediate view,  however,  promise  a  decided  increase  in  activity.     *     *     * 

LEADING  SECURITIES 

Rumely  shares  are  rapidly  nearing  the  zero  mark.  A  heavy  deficit  for 
the  calendar  year  of  1914  is  indicated  in  Chicago  advices,  and  rumors  of 
a  receivership  are  current.     *     *     * 

Much  speculative  interest  has  been  taken  in  Steel  common  on 
account  of  the  recent  rate  decision.  Some  increases  in  orders  have  taken 
place,  but  not  such  a  large  response  as  was  anticipated  by  some.  Most 
of  the  speculative  buying  of  this  stock  lately  has  been  of  the  cautious 
variety;  big  operators  especially  regard  the  stock  as  too  high  for  a  2  per 
cent  issue  and  have  sold  out  quickly  on  the  appearance  of  fair  profits. 
It  is  not  known  what  attitude  the  directors  will  take  at  the  close  of  this 
month  on  the  dividend. 


Fundamental  Industrial  Conditions 

(The  following  topics  are  treated  under  this  heading.) 

INDUSTRIAL  CONDITIONS  GENERALLY 
CONDITIONS  IN  NEW  OR  SPECIAL  INDUSTRIES 
BIG  FAILURES  AND  CREDIT  CONDITIONS 
CROPS 

EXPORT  TRADE 
COMMODITY  PRICES 


LaSalle  Extension  University  29 

Consulting  Service 

The  consulting  feature  of  the  Business  Administration 
Course  and  Service  is  an  invaluable  and  inseparable  part 
of  the  benefits  which  you  receive.  Puzzling  questions  will 
arise.  How  often,  as  you  sit  at  your  desk  or  move  about 
your  work,  are  you  confronted  with  difficult  questions  which 
you  never  heard  of  before? 

When  that  happens,  what  do  you  do? 

Do  you  force  a  decision  by  guessing  and  trusting  to  luck? 

Wouldn't  you  give  a  great  deal  at  such  a  moment  to 
be  able  to  consult  with  a  business  expert  whose  function 
it  is  to  discover  the  perplexing  problems  that  actually  arise 
day  after  day  in  hundreds  of  business  establishments! 

That  is  exactly  the  privilege  you  enjoy  as  a  subscriber 
to  the  Business  Administration  Course  and  Service.  Our 
staff  of  experts  in  any  one  of  the  following  highly  special- 
ized departments  is  at  your  service : 

Business  Administration 

Law 

Higher  Accountancy 

Bookkeeping 

Interstate  Commerce  and  Traffic 

Banking  and  Finance 

Business  English 

You  will  at  once  appreciate  the  value  of  the  service 
which  this  excellent  organization  of  ours  is  able  to  supply 
on  special  problems.  This  service  often  affords  you  an 
opportunity  to  receive  advance  information,  personal  and 
direct  in  its  application,  which  cannot  be  found  in  any  text- 
book. In  no  other  way  can  you  secure  such  up-to-date  and 
practical  information  bearing  directly  upon  the  very  ques- 
tions that  are  puzzling  you  most. 

Value  of  the  Consulting  Service 

We  believe  you  will  readily  recognize  the  tremendous 
advantage  of  this  feature  of  the  Business  Administration 
service  and  its  immediate  importance  as  related  to  your 
daily  activities  and  occupation.  All  the  informational 
resources  of  this  great  institution  are  at  your  disposal. 
You  know  for  yourself  how  much  it  costs  to  secure  profes- 
sional  opinions   from  lawyers,   sales   experts,   advertising 


30  Business  Administration 

specialists,  and  business  systematizers.    One  fee  is  often  a 
great  deal  larger  than  the  entire  cost  of  this  service. 

But  just  because  this  sort  of  work  is  so  expensive,  we 
must  place  a  limit  upon  the  number  of  free  opinions.  We 
agree  to  give  you  twelve  free  opinions  and  furnish  you  with 
twelve  free  consulting  coupons  worded  as  follows : 


Business  Administration  Course  and  Service 
Consulting  Coupon 

This  is  to  certify  that  the  bearer  is  entitled  to  information 
and  counsel  on  one  definite  proposition  relating  to 
business  affairs,  upon  surrender  and  signing  of  this  certificate 
at  any  time  during  two  years  from  the  date  of  subscription 
to  the  Business  Administration  Course  and  Service. 

LaSalle  Extension  University, 

Chicago,  Illinois.  Date 

Gentlemen  : 

Please  render  information  requested  in  attached 
statement. 

Signed 

My  Registration  No.  is 


For  all  opinions  over  this  number  we  must  make  a  rea- 
sonable charge.  In  such  cases  we  recommend  that  you  send 
us  an  account  of  your  proposition.  We  shall  then  give 
you  a  preliminary  statement  as  to  what  we  can  do  upon  the 
proposition  and  inform  you  of  the  charge  that  will  be  made 
for  a  full  opinion. 

You  do,  however,  enjoy  the  privilege  of  asking  an  unlim- 
ited number  of  questions  upon  the  subject-matter  of  the 
service.  Even  though  great  effort  has  been  made  to  make 
all  the  printed  matter  that  goes  with  this  service  simple  in 
its  organization,  clear  in  its  presentation,  and  comprehen- 
sive in  its  scope,  yet  perhaps  every  subscriber  will,  from 
time  to  time,  meet  with  issues  which  he  would  like  to  have 
explained  more  fully.  Bealizing  this  need  for  close  persona] 
contact,  the  LaSalle  Extension  University  extends  to  you 
an  unlimited  and  absolutely  free  use  of  this  feature  of  the 
consulting  service. 


LaSalle  Extension  University  31 

Examples  of  the  Character  and  Value  of  Our 
Consulting  Service 

EXAMPLE  1 

One  of  our  subscribers,  a  jobber,  wrote  in  as  follows : 

We  are  jobbers  working  the  retail  trade  and  travel  twenty  men. 

Our  line  comprises  over  five  hundred  items. 

Under  present  conditions,  when  our  men  call  upon  a  dealer, 
they  first  take  his  order  for  what  he  needs  and  then  thumb  over 
our  catalogue  to  see  if  there  is  anything  else  he  can  be  sold. 

In  recapping  sales,  we  find  that  the  individual  orders  person- 
ally taken  by  our  salesmen  are  far  too  small,  considering  salary 
and  expense  of  getting  to  the  town. 

Mail  orders  are  the  one  thing  today  that  keep  our  total  sales 
expense  within  the  bounds  of  reason. 

What  can  you  suggest  that  would  tend  to  help  our  salesmen  get 
larger  orders  in  their  calls  on  the  trade? 

After  ascertaining  that  our  subscriber's  salesmen  cov- 
ered their  respective  territories  every  thirty  days,  we  made 
the  following  recommendation : 

Before  a  salesman  starts  on  his  monthly  trip,  let  your  Sales 
Manager  select  fifteen  items— articles  which  are  seasonable  and 
should  be  especially  attractive  to  the  dealer. 

Let  these  be  called  the  "Fifteen  Seasonable  Specials."  Change 
them  every  time  a  salesman  goes  over  his  territory,  so  that  he  is 
pushing  something  new  each  time  he  calls  on  a  dealer. 

Then  instruct  your  men  to  adhere  strictly  to  the  following 
program  with  every  dealer  called  upon : 

(1)  Find  out  what  dealer  is  ready  to  order  and  book  him  up 
for  same. 

(2)  Go  through  the  "Fifteen  Seasonable  Specials."  Give 
a  brief  talk  on  each  one  and  try  to  take  the  dealer's  order  for  at 
least  a  small  quantity  before  passing  on  to  the  next  item. 

(3)  Go  through  the  catalogue  in  the  usual  way  merely  as  a 
reminder  to  the  dealer  of  items  he  may  need  and  may  have 
forgotten  about. 

After  a  thirty-day  trial  of  this  plan,  we  shall  be  pleased  to 
hear  what  results  are  obtained  on  same. 

As  a  result  of  this  suggestion  from  us,  our  subscriber 
found  practically  every  man  on  his  force  turning  in  a 
largely  increased  volume  of  business  inside  of  sixty  days. 

Steps  1  and  3  were  already  in  use.  They  insured  the 
salesman's  getting  all  the  business  the  dealer  was  ready 
to  place. 


32  Business  Administration 

To  these  we  added  Step  2 — injected  the  selling  element 
into  what  had  previously  been  largely  mechanical  order- 
taking. 

As  the  salesman  went  over  the  "Fifteen  Seasonable 
Specials,"  giving  his  little  selling  talk  and  trying  to  take 
an  order  for  each  one,  very  few  dealers  failed  to  respond 
with  small  orders  for  each  of  several  items.  And  the  total 
sum  of  these  "several  small  orders"  resulted  in  a  good, 
substantial  increase. 

EXAMPLE  2 

Another  of  our  subscribers  wrote : 

We  route  our  salesmen,  directing  the  towns  they  are  to  make 
each  week. 

The  men  are  supplied  with  pocket-size  Dun  books,  showing 
the  ratings  of  dealers  in  territories  they  cover. 

They  are  supposed  to  call  on  every  well-rated  dealer  handling 
our  type  of  product  in  each  town. 

But  reports  show  that  as  an  average  our  salesmen  call  on  only 
two  dealers  in  a  four-dealer  town,  one  dealer  in  a  three-dealer 
town,  and  so  on. 

In  plain  English,  our  men  today  are  not  calling  on  every  pos- 
sible buyer  in  their  towns. 

Our  letters,  entreaties,  and  commands  seem  to  be  without  any 
effect  whatsoever. 

And  this  in  spite  of  the  fact  that  we  positively  know  that  they 
have  time  to  spare  in  every  town  they  make. 

What  remedy  have  you  to  offer1? 

Our  recommendation  was  simple : 

Take  away  the  Dun  rating  books  from  your  men. 

Instead  of  leaving  it  up  to  them  whom  they  will  call  upon,  let 
the  same  man  who  makes  up  their  route  lists  refer  to  Dun  and 
give  them  the  names  of  the  dealers  you  are  willing  to  sell  in  each 
town. 

Heretofore,  you  have  routed  a  man  something  like  this : 

Monday:    Make  LaFarge,  Wis.,  and  so  on  through  the  week. 

From  now  on,  route  the  men  with  the  names  of  the  dealers 
you  want  called  upon  as  well  as  the  towns  to  be  made,  like  this: 

Monday:  La  Farge,  Wis.  See  Brittingham  &  Young,  Lbr. 
Dlrs. ;  J.  J.  Creeden  &  Co.,  Hardware;  Donaldson  Bros.,  Ag'l 
Implmts. ;  La  Farge  Lumber  Company ;  F.  A.  Thayer  Co.,  Bldg. 
Mat'l.     Report  results  of  each  call. 

In  other  words,  instead  of  leaving  it  up  to  your  men's  judg- 
ment whom  to  call  on,  give  them  a  "specified  task"— a  certain 
number  of  people  to  see  and  report  on  in  each  town. 


LaSalle  'Extension  University  33 

Under  this  plan  the  salesman's  time  was  fully  occupied 
from  the  time  he  landed  in  a  town  until  he  caught  the  train 
out. 

The  men  worked  harder  and  far  more  intensively. 

Territories  were  closely  worked  instead  of  by  rule-of- 
thumb  methods. 

And  as  a  result  the  total  sales  were  increased  materially 
because  a  greater  number  of  dealers  were  interviewed  and 
the  territories  were  worked  more  closely. 

EXAMPLE  3 

One  of  our  subscribers,  a  real  estate  dealer,  inquired 
as  follows : 

Please  advise  if  an  unsecured  promissory  note  which  provides 
for  attorney's  fees  in  event  of  suit  upon  default  is  negotiable. 

Through  our  legal  staff,  we  advised  our  subscriber  as 
follows : 

Such  an  instrument  is  negotiable.  Putting  in  a  clause  provid- 
ing for  attorney's  fees,  in  case  it  becomes  necessary  to  sue  on  the 
note,  does  not  make  the  note  conditional,  neither  does  it  render 
it  uncertain  within  the  meaning  of  the  law. 

The  Negotiable  Instruments  Law  provides  that  the  sum  pay- 
able is  a  sum  certain  within  the  meaning  of  this  act,  although  it  is 
to  be  paid  with  cost  of  collection  or  an  attorney's  fee  in  case  pay- 
ment shall  not  be  made  at  maturity.  This  law  is  in  effect  in  your 
own  state. 

Our  subscribers  send  in  requests  for  information  upon 
puzzling  legal  points  like  this  very  frequently.  Large 
sums  of  money  are  saved  for  them  by  this  free  service. 

The  experts  of  our  legal  department  always  give  prompt 
consideration  to  requests  of  this  kind.  Any  subscriber  may 
add  a  legal  staff  to  his  business  without  any  extra  charge. 

The  convenience  and  money-saving  value  of  this  feature 
of  our  service  will  readily  be  appreciated  by  all  business 
men  who  have  had  to  pay  attorney's  fees  for  legal  advice. 


34  Business  Administration 

Text- Books  and  Their  Authors 

1.  PERSONAL  EFFICIENCY,  APPLIED  SALESMAN- 

SHIP, AND  SALES  ADMINISTRATION.  Irving  R. 
Allen,  Sales  Expert  and  Organizer,  Chicago. 

2.  BUSINESS     PSYCHOLOGY.       Hugo     Munsterberg, 

Ph.D.,  LL.D.,  Professor  of  Psychology,  Harvard  Uni- 
versity. 

3.  BUSINESS  LAW.     Samuel  D.  Hirschl,  S.  B.,  J.  D., 

Member  of  the  Illinois  Bar,  Chicago. 

4.  BUSINESS  ENGLISH.    Edwin  Herbert  Lewis,  Ph.D., 

LL.D.,  Professor  of  English,  Lewis  Institute,  Chicago. 

5.  BUSINESS   ECONOMICS.     Ernest   Ludlow   Bogart, 
Ph.D.,  Professor  of  Economics,  University  of  Illinois. 

6.  INDUSTRIAL     ORGANIZATION    AND    MANAGE- 

MENT. Hugo  Diemer,  M.  E.,  Professor  of  Industrial 
Engineering,  Pennsylvania  State  College;  Consulting 
Efficiency  Engineer. 

7.  MONEY    AND    BANKING.      Henry    Parker    Willis, 

Ph.D.,  Secretary,  Federal  Reserve  Board;  Formerly 
Managing  Editor,  New  York  Journal  of  Commerce. 

8.  INVESTMENTS  AND  SPECULATION.  Louis 
Guenther,  Editor,  Financial  World,  New  York. 

9.  ORGANIZING  A  BUSINESS.  Maurice  H.  Robinson, 
Ph.D.,  Professor  of  Economics,  University  of  Illinois. 

10.  FINANCING  A  BUSINESS.  Elmer  H.  Youngman, 
Editor,  The  Bankers  Magazine,  New  York. 

11.  ADVERTISING.  E.  H.  Kastor,  H.  W.  Kastor  &  Sons, 
Advertising  Co.,  Chicago. 

12.  RETAIL  MERCHANDISING.  Paul  Neystrom,  Ph.D., 
Associate  Professor  of  Economics  in  charge  of  mer- 
chandising courses,  University  of  Minnesota. 

13c  CREDITS.  Edward  M.  Skinner,  Manager,  Wilson 
Bros.,  Chicago ;  Formerly  President,  Chicago  Associa- 
tion of  Commerce. 

14.  COLLECTIONS.  R.  S.  White,  Collection  Manager, 
American  Steel  &  Wire  Company. 


LaSalle  Extension  University  35 

15.  TEANSPORTATION  AND  TRAFFIC.  I.  L.  Sharf- 
man,  Ph.D.,  Professor  of  Economics,  University  of 
Michigan. 

16.  OCEAN  TRAFFIC  AND  TRADE.  B.  Olney  Hough, 
Editor,  American  Exporter,  New  York. 

17.  ACCOUNTING.  Henry  Parker  Willis,  Ph.D.;  For- 
merly Professor  of  Economics,  George  Washington 
University;  Associate  Editor,  Journal  of  Accountancy. 

18.  OFFICE   ORGANIZATION  AND   MANAGEMENT. 

C.  C.  Parsons,  Manager,  Shaw- Walker  Company,  New 
York;  Formerly  Lecturer  in  Business  Administration, 
University  of  Michigan. 


It  would  be  almost  impossible  for  an  inexperienced 
swimmer  to  stem  the  tide  of  high  waves  which  to  the  expe- 
rienced swimmer  would  be  no  task  at  all. 

The  high  waves  of  commercialism  have  been  successfully 
swept  aside,  not  once,  but  time  and  time  again  by  these  ex- 
perts who  have  collaborated  in  laying  before  you  the  funda- 
mental principles  of  business  leadership.  They  tell  you 
every  movement,  every  action  necessary  to  become  a  leader. 
They  give  you  the  opportunity  to  add  twenty  years  of  expe- 
rience to  your  commercial  knowledge. 

An  untrained  man  might  eventually  attain  commercial 
success,  but  age  would  have  overtaken  him  before  he  could 
enjoy  the  fruits  thereof. 

The  Business  Administration  Course  and  Service  is  the 
only  business  aid  constructed  by  practical,  experienced,  suc- 
cessful business  men  who  can  say  to  you:  "Follow  these 
fundamental  principles ;  we  know  they  are  right,  not  by 
guesswork  or  by  theory,  but  by  practical  application. ' ' 

To  become  a  successful  leader  you  must  have  a  perfect 
knowledge  of  the  fundamental  principles  laid  down  in  this 
course.  It  is  only  a  question  if  you  are  to  gain  them  through 
years  and  years  of  trial  and  small  pay,  and  even  then  if  at 
all,  or  gain  them  positively  through  this  course  and  now. 


36 


Business  Administration 


Personal  Efficiency,  Applied    Salesmanship,  and    Sales 

Administration 


IRVING   R.   ALLEN 

Sales  Counsel  and  Organizer 

Chieago 


Retainer  fees  of  $5,000  and  up  are  the 
rule  and  not  the  exception  in  Mr.  Allen's 
business. 

His  work  as  sales  counsel  is  just  as  much 
a  profession  as  the  practice  of  law. 

And  his  earnings  come  from  the  same 
source— money    received    for    advice. 

The  foundation  of  Mr.  Allen's  ability  to 
give  productive  counsel  on  sales  matters 
dates  back  to  the  days  when  he  was  "on  the 
road"   himself. 

His  records  were  little  short  of  miracu- 
lous. 

Step  by  step,  observing  and  applying,  he 
forged  ahead  from  the  ranks  to  the  private 
office. 

From  director  of  sales  for  one  concern 
he  became  sales  adviser  to  several.  And  that 
was  the  beginning  of  the  first  business  of 
its   kind   in   history. 

In  this  work  on  Personal  Eftieiency, 
Applied  Salesmanship,  and  Sales  Administra- 
tion, Mr.  Allen  discloses  to  all  subscribers  of 
this  service  the  principles  which  he  has  been 
able   to   put   into   effect   in   such   a   big   way. 


A  BRIEF  TOPICAL  OUTLINE 

Developing  Personal  Power  Applying  Personal  Powei 

Selling  Personal  Services  to  Advantage 

Selling  Goods  Organizing  a  Selling  Campaign 

The  Human  Element  in  Salesmanship 

Analysis  of  the   Market  Analysis  of  the  Goods 

Selling  Principles,   Methods,  and  Problems 

Selling  Points  Selling  Talks  Meeting  Objections 

A  Winning  Personality         Arguments  and  Suggestions 

Making  the  Most  of  One's  Ability 

Overcoming  the  Antagonism  to  Buy 

The  Approach,  Demonstration,  and  Close 

Marketing    and    Distributing    System— Wholesaler,    Jobber, 

Retailer,  Mail  Order,  Chain  Store 

Efficiency  in  Selling  and  Its  Relation  to  Business  Success 


LaSalle  Extension  University  37 

Personal  Efficiency,  Applied  Salesmanship,  and   Sales 

Administration 

There  are  just  three  things  in  salesmanship  that  a  busi- 
ness man  is  seriously  concerned  about : 

1.  Ability  to  sell  himself 

2.  Ability  to  sell  to  others 

3.  Ability  to  manage  his  sales  plans 

We  have  placed  first  the  ability  to  sell  to  advantage  one's 
own  personal  talents,  knowledge,  training,  ability,  and  serv- 
ices. The  world  is  full  of  capable,  efficient,  well-trained  men 
working  for  a  pittance,  while  less  competent  men  pass  as 
geniuses  and  "get  away  with  it,"  too.  This  section  shows 
you  how  to  pass  in  the  commercial  world  for  what  you  are. 
It  explains  how  to  "cash  in"  on  this  work. 

Ability  to  sell  to  others  involves  a  good  understanding  of 
human  nature,  psychology,  the  laws  of  suggestion,  together 
with  exact  knowledge  on  how  to  proceed  in  the  approach, 
demonstration,  and  the  close.  Salesmanship,  though  an  art, 
is  based  upon  science. 

This  subject  presents  a  form  of  approach  that  properly 
prepares  the  way  for  your  demonstration — a  successful 
demonstration  that  creates  desire  and  causes  conviction  that 
it  is  best  to  buy,  and  a  method  of  closing  that  is  easy  and 
natural. 

The  explanation  given  in  this  section  for  overcoming  the 
antagonism  to  being  sold  is  the  most  unique  and  effective 
that  has  ever  been  presented.  Experienced  salesmen  are 
using  and  endorsing  it  constantly. 

Scientific  management  in  salesmanship  was  as  inevitable 
as    better    methods    of    organization  ~~^ 

and  management  in  factory  and  shop.      /r  i|K 

The  third  part  of  this  section  pre-  /  -.gm^tZu  f®%  C 
sents  the  best  methods  for  planning,  i 
organizing,  and  managing  salesman- 
ship work.  These  three  sections 
cover  the  whole  range  of  sales- 
manship problems.  Each  group  is 
complete,  scientific,  and  tested  by 
experience. 


38 


Business  A dministration 


Business  Psychology 


HUGO  MiJNSTERBERG 

Ph.   D.,   M.   D.,  L.L.   13. 

Professor  of  Psychology 

Harvard   University 


Professor  Mlinsterberg  holds  so  many 
college  degrees  and  honors  from  institutions 
of  learning,  both  in  this  country  and  abroad, 
that  no  enumeration  of  them  can  add  to  his 
eminence.  He  has  held  the  presidency  and 
other  high  offices  in  many  learned  societies, 
both  national  and  international.  Since  1892 
he  has  been  Professor  of  Psychology  at  Har- 
vard University. 

Professor  Miinsterberg  was  pleased  to  ac- 
cept the  preparation  of  our  text  on  Business 
Psychology  because  of  his  interest  in  this,  his 
chosen  field,  which  underlies  all  progress  in 
thought  and  industry.  Professor  Miinster- 
berg stands  in  the  front  rank  of  scholars,  and 
what  he  has  written  is  worth  the  study  of 
every  man. 

His  work  is  eminently  practical.  Many 
business  concerns  have  availed  themselves  of 
Professor  Miinsterberg's  services  as  a  practi- 
cal consulting  psychologist  in  solving  their 
business   problems. 


A  BRIEF  TOPICAL  OUTLINE 


Application   of  Psychology  in   Business 

Sensation   and   Perceptions 

Laws  of  Memory— Association,   Repetition,  Freshness, 

Impressiveness,   Selective   Power 

The  Memory  Process 

The  Laws  of  Attention— Vividness,  Exclusion,  Transition  to 

Activity,  Feeling  of  One's  Self  in  Attention 

Application  to  Business  and  Selling  Imagination 

Control  of  the  Will  Suggestion  Hypnotism 

Self-Suggestion  The  Acquirement  of  Abilities 

Psychological  Adaptation  of  Working  Tools 

Fatigue  Vocational  Fitness 

The  Selection  of  Fit  Individuals 

Graphology  Phrenology  Mental   Tests 

Practical  Application  to  Business  and  Personal  Efficiency 


LaSalle  'Extension  University  39 

Business  Psychology 

There  never  was  a  time  in  the  world's  history  when  the 
practical  business  man  was  so  much  interested  in  the  sub- 
ject of  psychology  and  personal  efficiency  as  he  is  today. 
The  reason  is  simple.  Psychology  has  been  liberated  from 
its  theoretical,  bookish  past  and  has  been  related  very 
closely  to  everyday  life. 

In  business  we  speak  of  the  psychology  of  advertising, 
the  psychology  of  salesmanship,  the  psychology  of  this  and 
that  proposition,  and  even  of  a  psychological  business  de- 
pression. Our  business  vocabulary  is  full  of  psychological 
terms. 

Every  successful  business  man  who  wishes  to  acquire 
unusual  ability  in  the  art  of  handling  and  influencing  men, 
must  know  a  great  deal  about  the  mind  and  human  nature. 

It  is  the  function  of  business  psychology  to  interpret 
these  simple,  everyday  facts  about  the  mind  as  chemistry 
describes  the  composition  of  matter.  This  section  of  the 
service  includes  a  study  of  the  mental  bases  of  successful 
leadership,  the  mental  processes  involved  in  the  proper 
selection  of  employes,  production,  and  marketing,  and  the 
psychological  conditions  of  personal  efficiency. 

In  the  first  part  of  this  section  a  thorough  study  is  made 
of  all  the  functions  of  the  mind  which  are  essential  for 
success  in  commerce  and  industry.  It  shows  what  such 
factors  as  the  relation  of  mind  to  body,  perception,  memory, 
thoughts,  attention,  suggestion,  feeling,  emotion,  volitions, 
training,  and  habit  formation  play  in  business  economy. 

In  the  second  part  the  chief  question  is  how  these  mental 
functions  differ  from  man  to  man  and 
how  these  differences  of  intelligence, 
talent,  character,  and  temperament 
can  be  tested,  can  be  adjusted  to  the 
various  commercial  and  industrial 
tasks,  and  how  the  individual  can  de- 
velop those  energies  which  are  needed  1 
for  special  activities.  The  aim  is 
greater  personal  and  business  effi- 
ciencv  in  every  direction. 


40 


Business  Administration 


Business  English 


Nathaniel  Butler 
(University  of  Chicago) 

says  of  Professor 
Lewis'  Business  Eng- 
lish: 

"It  touches  the 
very  problems  of 
which  i  ts  title 
promises  the  so- 
lution." 


Professor  Edwin  Herbert  Lewis,  author  of 
our  section  on  Business  English,  holds  the 
degrees  of  Ph.  D.  and  LL.  D.,  and  is  Professor 
of  English  at  Lewis  Institute,  Chicago. 

He  is  not  only  a  pioneer,  but  a  great  out- 
standing leader  and  authority  in  the  field  of 
business  English.  He  is  a  man  of  ability  and 
literary  tastes.  His  work  has  received  the 
endorsement  of  teachers  in  commercial  Eng- 
lish throughout  the  country  and  is  used  as  a 
basis  of  study  in  our  leading  colleges  and 
commercial  schools. 

Professor  Lewis  is  the  author  of  A  First 
Book  in  Wilting  English,  A  First  Manual  of 
Composition,  An  Introduction  to  the  Study  of 
Literature,     Applied     English     Grammar,     and 

other  books  on  English. 

Business  English  offers  the  business  man 
an    opportunity    to    become   more    effective    in 

his   English. 


A  BRIEF  TOPICAL  OUTLINE 


The  Value  of  Good  Written  and  Spoken  English  in  Business 

Business  Letter  Writing 

Letters  that  Sell  Goods,  Collect  Money,  Adjust  Complaints, 

Win  Promotion 

Follow-up  Letters  Originality  in  Letters 

The  Thought  Behind  Letters  that  Sell 

Interest  and  Clearness  Paragraphs  and  Sentences 

Correct  and  Effective  Punctuation 

Grammatical   Correctness  Effective  Sentences 

Idiomatic  and  Figurative  Phraseology 

Tone  and  Degree  of  Dignity  A  Business  Vocabulary 

The  Business  Letter  in  Detail 

Intelligent   and    Interesting   Business   Reports 

Advertisement  English  for  Copy,  Circulars,  and  Booklets 


LaSalle  Extension  University  41 

Business  English 

Is  there  such  a  thing  as  business  English? 

It  might  surprise  you  to  learn  how  much  language 
leakage  there  is  in  your  daily  work.  Sales  managers,  cor- 
respondents, stenographers — all  along  the  line  in  almost 
every  business  establishment  there  is  an  inexcusable  lack  of 
practical  application  of  good,  gingery,  business-getting 
English. 

Careless,  slipshod  English,  both  in  speaking  and  writ- 
ing, on  the  part  of  a  manager,  salesman,  or  correspondent 
has  often  been  the  cause  of  failure  to  land  new  customers 
or  hold  old  ones,  just  as  it  almost  invariably  holds  back  the 
subordinate  from  promotion.  It  is  this  lack  of  effectiveness 
in  the  English  one  speaks  or  writes  that  constitutes  lan- 
guage leakage.  And  a  mighty  costly  leakage  it  sometimes 
proves  to  be ! 

How  many  of  your  business  letters,  for  instance,  are  as 
effective  as  they  might  be?  A  letter  may  be  grammatically 
correct  and  yet  not  be  a  result-getter.  Regardless  of  how 
grammatical  it  may  be,  if  it  doesn't  get  the  business  it  isn't 
written  in  good  business  English.  And  the  same  is  true 
of  all  other  literature  that  pertains  to  business — advertise- 
ments, catalogs,  booklets,  circulars,  etc. 

Professor  Lewis  has  handled  this  subject  of  business 
English  in  a  delightfully  interesting  and  masterful  manner. 
He  gives  you  a  clear  idea  of  what  business  English  really 
is  and  how  it  may  easily  and  readily  be  acquired. 

A  knowledge  of  business  English  gives  one  the  personal 
satisfaction  of  speaking  and  writing 
correctly  on  any  subject  at  all  times.  It 
gives  him  a  more  extensive  vocabulary, 
makes  him  a  clear  thinker,  a  ready 
writer,  a  convincing,  logical  speaker. 
And  it  adds  immeasurably  in  effective- 
ness to  everything  he  writes  or  says. 

Everything  in  this  section  is  prac- 
tical. The  examples  are  taken  from 
everyday  business  transactions. 


42 


Business  Administration 


Business  Law 


Mr.  Hirschl  received  his  college  and  legal 
education  at  the  University  of  Chicago.  He 
holds  the  degrees  of  Bachelor  of  Science  and 
Doctor  of  Jurisprudence,  Cum  Laude,  the 
highest  scholastic  honors  which  this  great 
law  school  could  confer  upon  him. 

He  is  a  member  of  the  Illinois  State  Bar 
and  is  now  applying  his  great  ability  in  the 
active  practice  of  law  in  the  city  of  Chicago. 
He  is  a  well-known  specialist  in  patents, 
trade-marks,   and   copyrights. 

Hirschl's  Business  Law,  therefore,  is  the 
work  of  a  scholar  and  a  successful  practicing 
attorney.  His  work  has  been  adopted  as  a 
text-book  in  many  of  America's  leading  col- 
leges and  universities.  It  is  an  ideal  book 
in  that  it  meets  the  practical  needs  of  busi- 
ness and   teacher. 

On  account  of  the  completeness  and 
authoritativeness  of  the  work,  it  serves  as  a 
valuable  reference  book  for  business  law 
problems. 


A  BRIEF  TOPICAL  OUTLINE 


Law  in  General  Contracts  Partnerships 

Corporations  The  Law  of  Sales  Commercial  Paper 

Damages  Negligence  The  Law  of  Agency 

Chattel  Mortgages  Real  Estate  Law  Deeds 

Personal  Property  Assignments  Copyrights 

Trade-Marks  Garnishments  Attachments 

Landlord  and  Tenant  Judgments 

Trusts  and  Trustees  Administration  of  Estates 

Executors  and  Administrators 

Power   of  Attorney  Leases  Negotiable    Instruments 

Patents  Sales  Bankruptcy  and   Receivership 

Bailments  Insurance 


LaSalle  Extension  University  43 

Business  Law 

"The  greatest  risk  in  business  is  legal  risk,"  are  the 
words  of  J.  Pierpont  Morgan. 

Every  man  is  presumed  to  intend  the  legal  consequences 
of  what  he  voluntarily  does.  Ignorance  of  the  law  excuses 
no  one.  All  business  transactions,  therefore,  come  within 
these  rules. 

The  pathways  of  commerce  are  strewn  with  the  wrecks 
of  business  enterprises  which  ran  counter  to  the  law. 

Business  sharps  and  crooked  promoters  have  fattened 
on  the  legal  ignorance  of  honest,  successful  business  men. 

Millions  of  dollars  are  charged  to  Profit  &  Loss  annually 
on  account  of  ignorance  of  the  law  of  credits  and  collections. 

Business  expectations  are  shattered  and  fortunes  dissi- 
pated everywhere  because  of  invalid  contracts  full  of 
"jokers." 

Trade  advantages  are  sacrificed  and  heavy  advertising 
investments  lost,  clue  to  inexact  and  inadequate  knowledge 
of  the  law  pertaining  to  patents,  trade-marks,  copyrights, 
and  unfair  competition. 

The  hiring  of  labor,  making  of  contracts,  selling  of 
goods,  signing  of  notes,  and  all  the  common  commercial 
transactions  require  a  practical  working  knowledge  of  law. 

Nearly  every  business  man  suffers  sometimes  from  an 
inadequate  or  imperfect  knowledge  of  law.  Let  us  take  a 
concrete  case : 

B  went  to  his  tailor  one  day  and  introduced  his 
friend,  C,  saying,  "C  is  0.  K.     Let  him  have  any- 
thing he  w ants;    I  ivill  guarantee  ^       ^ 
his  account."     C   ordered  an  ex- 
pensive outfit,  which  he  failed  to    A 
pay  for  when  demand  was  made.  M 
The    tailor    then    requested   B    to  M 
make  the  account  good.     This  B  m 
refused  to  do,  and  the  tailor  cotdd  f5 
not    recover.      WHY?      Had    he    \ 
studied   Business   Law   he   ivould 
have  known  why. 


44 


Business  Administration 


ERNEST  L,.  BOGART,  Ph.D. 

Professor    of    Economics 

University  of  Illinois 


Business  Economics 


Professor  Bogart  has  had  a  very  extensive 
training-  in  Economics.  He  received  the  de- 
grees of  A.  B.  and  A.  M.  from  Princeton  Uni- 
versity and  Ph.  D.  from  the  University  of 
Halle,  and  has  pursued  special  investigations 
at  the  universities  of  Princeton,  Columbia, 
and    Berlin. 


He  has  been  Assistant  Professor  of 
Economics,  History,  and  Politics  at  Princeton 
University;  Assistant  Professor  of  Economics 
and  Social  Science  at  Indiana  University; 
Professor  of  Economics  and  Sociology  at 
Oberlin  College;  and  is  now  Professor  of 
Economics  at  the  University  of  Illinois.  He 
holds  membership  in  the  American  Economic 
Association  and  the  National  Tax  Association. 

In  Business  Economics  Professor  Bogart 
has  given  business  men  an  exceptionally  clear 
and  practical  discussion  of  the  economic  laws 
which  underlie  business  activities. 


A  BRIEF  TOPICAL  OUTLINE 


Capitalistic  Production  Factory  System 

Localization  of  Industry  Division  of  Labor 

Concentration,    Integration,    and   Large-Scale   Production 

Agricultural  and  Mineral  Resources  of  the  United  States 


Trusts  and   Monopolies 

Recurrence  of  Crises 

Strikes  and  Lockouts 
Woman  and  Child  Labor 

Industrial  Education 


Speculation   and  Crises 
The  Modern  Wage  System 
Conciliation  and  Arbitration 

Workmen's  Compensation 
Profit-Sharing  and  Co-operation 
Problems  of  Distribution— Rent,  Interest,  Profits,  Wages 

Saving  and  Spending  Socialism 

Taxation  and  Tariff  Industrial  Progress 


LaSalle  Extension  University  45 

Business  Economics 

Business  Economics  treats  of  the  ways  in  which  the 
world  makes  a  living.  It  deals  with  the  larger  aspects  of 
business  as  arithmetic  deals  with  numbers.  Every  sound 
business  transaction  is  in  accord  with  economic  laws  and 
principles. 

A  committee  of  the  Investment  Bankers  Association  of 
America  said,  concerning  the  importance  of  this  subject: 

"It  is  worth  the  time  of  any  bond  man  who  has  not  had 
college  courses  in  economics  to  read  a  general  work  in 
economic  theory." 

That  is  the  verdict  of  all  practical  and  successful  busi- 
ness men  who  have  given  this  subject  their  best  thought. 

Business  Economics  treats  of  the  fundamental  economic 
laws  governing  the  production,  sale,  and  consumption  of 
goods,  and  explains  the  principles  affecting  labor,  wages, 
money,  lands,  rent,  waste,  conservation,  etc. 

In  these  days  of  high  cost  of  living,  trust  problems, 
tariff  reform,  currency  problems,  labor  unrest,  socialism, 
profit-sharing,  co-operation,  etc.,  the  average  man  is  at  sea 
without  a  compass.  Wrong  notions  and  fancies  cause  him 
to  make  serious  mistakes.  His  ideas  need  the  direction  and 
systematization  acquired  from  a  study  of  Business  Eco- 
nomics.   It  exposes  the  most  common  economic  fallacies. 

John  D.  Rockefeller  once  said:  "Keep  to  broad, 
sure  lines,  and  study  them  to  be  certain  that  they  are 
correct  ones.  Watch  the  natural  operations  of  trade, 
and  keep  within  them." 

What  are  " broad,  sure  lines"! 

What  does  he  mean  by  "natural 
operations  of  trade"? 

These  are  not  generalities.    Rocke-  J 
feller  knew  what  he  was  talking  about.  I 
He  had  analyzed  their  relationship  to| 
business  success. 

Business  Economics  treats  of  just 
such  fundamental  business-shaping 
forces. 


46 


Business  Administration 


Industrial  Organization  and  Management 


HUGO  DIEMER,  B.A.,  M.E. 
Prof.  Iiulust.  Engineering 
Pennsylvania   State  College 


Mr.  Diemer  holds  the  degrees  of  B.  A.  and 
M.  E.,  and  is  Professor  of  Industrial  En- 
gineering at  Pennsylvania  State  College. 

He  is  a  member  of  the  American  Society 
of  Mechanical  Engineers,  The  Society  to  Pro- 
mote the  Science  of  Management,  and  the 
American  Academy  of  Political  and  Social 
Science. 

Mr,  Diemer  is  one  of  the  great  students 
and  leaders  in  the  field  of  Industrial  Man- 
agement. He  has  not  only  studied  the  problem 
from  every  angle,  but  has  strengthened  his 
work  by  practical  experience.  He  was  for- 
merly Superintendent  of  the  National  Motor 
Vehicle  Company  and  is  now,  in  addition  to 
his  work  as  professor,  a  consulting  industrial 
engineer,  installing  the  very  systems  whifch 
he  explains  in  this  section. 

Mr.  Diemer  is  well  known  among  engi- 
neers and  business  men  for  his  exceptionally 
clear  and  practical  ideas  upon  management 
problems. 


A  BRIEF  TOPICAL  OUTLINE 


Organization,  Administration,  and  Control 

Line  Control  Line  and  Staff  Control 

Functional  Control  Committee  Control  System 

Efficiency  Making  Charts  of  Organization 

Locating  an  Industry  Manufacturing  Plants  and  Equipment 

Power  Generation 

Heating,  Ventilating,  Humidifying,  and  Air- Washing  Appliances 

Store  Rooms  Planning  Department 

Purchasing  of  Materials  and  Supplies 

Receiving,   Storing,   and  Recording  Materials 

Determination  of  Cost  Distribution  of  the  Expense  Burden 

Standardization  Scientific  Management 

Time  and  Motion  Studies  Inspection  Wage  Systems 

Welfare  and  Betterment  Work 

Employment  of  Labor  Reports  to  Executives 


WE  MAKE  YOUR  HOME  A  UNIVERSITY 


The  Advantages  of 

Correspondence  Instruction 

By  A.  S.  MONROE 
(Written  for  "Spare  Moments,"  Rochester,  N.  Y.) 


There  are  Schools  and  Schools 


On  the  start  I  want  to  remind  the  reader  that 
there  are  schools,  and  schools,  both  of  the  resident 
and  the  correspondence  variety.  I  remember  stray- 
ing into  a  small  isolated  western  town  some  years 
ago,  far  from  a  railroad  and  other  facilities  of  civil- 
ization, and  having  one  of  the  people  of  the  place 
point  out  to  me  with  local  pride  the  "academy" — a 
rude  one-story  frame  shanty-like  building.  I  was 
curious  to  see  what  this  seat  of  learning  was  like, 
and  went  at  once  to  visit  the  school.  I  shall  never 
forget  the  funny  little  "professor"  who  met  me  at 
the  door  with  the  profoundest  of  bows.  He  was 
glad  to  "show  off"  his  school,  and  while  airily 
flaunting  a  naming  red  silk  handkerchief,  evidently 
a  badge  of  higher  degree  of  refinement  than  that 
generally  prevailing,  called  the  class  in  "Laiin,"  as 
he  called  it.  I  wondered  what  school  had  turned 
him  loose  with  that  way  of  emphasizing  the  last 
syllable,  and  listened  with  much  amusement  as  he 
"heard"  the  class  recite.  His  Latin  class  was  the 
classic  touch  that  ranked  his  village  school  as  an 
"academy" — Latin  and  algebra,  which  he  also  as- 
sured me  he  taught.  This  was  the  first  bit  of  higher 
learning  to  be  introduced  in  that  part  of  the  world, 
and  as  such  has  historic  interest;  but  I  doubt  if 
the  instruction  had  much  influence  in  awakening 
a  love  for  learning,  or  sent  many  of  the  strapping 
youths  and  pretty  maidens  to  college  later. 


Select  a  Reputable, 
Well  Established  School 


In  the  same  way,  though  not  so  grotesquely,  per- 
haps, I  have  since  found  little  "one-horse"  schools 
scattered  here  and  there  over  the  country,  calling 
themselves  "colleges"  and  "academies,"  which  bore, 
little  resemblance  tb  the  well-established,  well-or- 


dered college  and  academy  of  recognized  fame. 
And  I  have  also  seen  correspondence  schools  ad- 
vertised to  teach  "nursing  in  six  weeks,"  "French 
in  thirty  days,"  bookkeeping  in  a  marvelously 
short  period  of  time,  and  journalism  "while  yon 
wait."  I  do  not  believe  that  such  schools  bear  any 
more  resemblance  to  the  reputable,  well-established 
schools  of  correspondence  than  the  small  country 
"colleges"  bear  to  Harvard,  Yale  or  Dartmouth, 

And  so,  at  the  beginning,  I  do  not  want  to  be 
understood  as  standing  back  of  all  correspondence 
instruction  by  any  means;  to  this  end  I  shall  con- 
fine myself  strictly  to  the  comparison  of  methods 
of  teaching  as  employed  by  the  two  systems  when 
each  is  carried  on  In  The  most  representative  man- 
ner. 


Superiority  of 
Correspondence  Instruction 


The  correspondence  method,  in  the  first  place,  is 
the  superior  of  the  two  for  the  purpose  of  the  ma- 
ture man  or  woman,  or  the  youth  who  wishes  to 
learn  quickly  and  thoroughly  any  one  subject, 
without  regard  to  other  subjects  or  to  others  who 
are  pursuing  the  same  line. 

The  student  is  in  a  class  by  himself.  He  pays 
his  money,  and  enrolls  to  learn  that  one  particular 
thing,  not  to  attend  school  for  a  certain  number  of 
months.  He  is  in  earnest  about  wanting  to  learn 
it,  or  he  would  not  have  enrolled.  Having  en- 
rolled, he  receives  his  instruction  papers,  and  his 
first  lessons.  He  studies  a  lesson  thoroughly,  pre- 
pares the  exercise  called  for,  mails  it  to  the  school, 
and  it  comes  directly  under  the  eyes  of  his  in- 
structor, who  is  an  expert  in  that  particular  line. 
The  instructor  examines  the  work,  crosses  out  a 
line  here,  adds  a  few  words  there,  explains  a  point 
on  another  page  that  the  student  seems  but  to  have 
dimly  grasped,  and  by  the  time  he  has  finished; 


LASALLE  EXTENSION  UNIVERSITY,  CHICAGO,  ILL. 


WE  MAKE  YOUR  HOME  A  UNIVERSITY 


criticising  the  sheets,  they  are  well  marked  up 
with  red  ink  notes.  He  dictates  a  letter  to  the 
student,  showing  him  more  fully  where  he  was 
wrong  and  recognizing  where  he  was  right.  He 
does  not  hesitate  to  say  just  exactly  what  he 
thinks  of  the  student's  work.  He  is  not  looking 
into  timid  eyes,  or  the  face  of  a  son  of  an  im- 
portant patron,  nor  is  he  held  in  check  by  the 
student's  sensitiveness  to  criticism.  He  tells  him 
the  truth  fearlessly,  and  returns  the  work  to  him 
with  a  new  lesson. 


Student  has 
No  Disadvantages 


The  student,  on  the  other  hand,  receives  his 
work  with  actual  pleasure  in  the  criticism,  because 
no  one  else  is  there  to  see  now  he  has  blundered, 
and  he  can  go  over  his  lesson  in  the  upmost  privacy, 
searching  out  the  reason  for  each  correction,  refer- 
ring again  to  his  lesson  sheets,  and  if  not  fully 
understanding  all  the  points,  he  has  only  to  write 
a  letter  with  his  next  exercise,  asking  for  further 
explanation.  On  his  part,  no  dread  of  seeming 
stupid  deters  the  request  for  further  light.  Also 
he  can  take  as  mucL  time  as  he  needs  to  prepare 
his  work.  Bear  in  mind  that  the  sole  object  here 
is  to  learn  the  thing;  not  to  pass  an  examination 
or  to  receive  a  degree,  or  to  "get  through."  If  it 
is  necessary  for  him  to  do  the  same  lesson  over 
a  half  dozen  times/  before  he  has  perfectly  mastered 
it,  he  has  every  opportunity  for  so  doing.  And 
xwhen  that  lesson  is  perfectly  mastered,  he  takes 
up  the  next 


You  are  Neither 
Held  Back  nor  Pushed 


The  correspondence  student  is  not  held  back  by 
students  of  slower  mental  grasp,  neither  is  he 
pushed  ahead  beyond  his  power  to  assimilate.  He 
progresses  from  lesson  to  lesson,  learning  all  there 
is  in  it,  going  back  and  reviewing  from  time  to 
time,  and  all  the  while  growing  stronger  in  his 
knowledge  and  in  his  confidence  in  himself.  He 
is  not  diverted  from  his  study  by  class  mates,  col- 
lege societies  or  other  things  that  go  to  make  up 
resident  college  life.  He  has  paid  his  money  to 
learn  a  certain  thing,  and  he  is  making  a  business 
of  learning  it. 

Men  and  women  of  mature  years  pursue  corre- 
spondence instruction  with  the  same  zest  that  they 
would  a  college  course,  minus  the  embarrassment 
of  going  to  school  after  they  are  grown  up,  or 
alongside  their  sons  and  daughters.  Business  men 
and  women,  while  pursuing  one  line,  can  quietly 


prepare  for  another  without  knowledge  of  their 
doing  so  reaching  the  ears  of  employer  or  friends. 
There  are  many  perfectly  legitimate  reasons  why 
they  should  prefer  that  their  plans  remain  un- 
known. 


Better  than  Night  School 


A  distinct  advantage  over  night  school  is  that 
the  man  or  woman  who  has  been  down  town  all 
day  reaches  home  with  a  sense  of  relief  that  makes 
another  trip  out  after  dinner '  anything  but  invit- 
ing. By  the  correspondence  method,  the  lesson 
awaits  him,  and  he  has  only  to  go  to  his  room  and 
in  its  quiet  seclusion  do  his  studying  and  prepare 
his  lesson. 


Practical,  not 
Theoretical  Instructors 


In  resident  schools,  business  subjects  specially 
cannot  be  so  practically  taught,  for  the  reason  that 
experienced,  successful  business  men  in  different 
lines  are  not  found  scattered  over  the  country  de- 
voting their  time  to  teaching  others  by  the  methods 
by  which  they  accomplish  their  own  success;  but 
as  the  name  and  success  of  the ,  correspondence 
school  depends  wholly  on  the  success  of  its  gradu- 
ates, experienced  instructors  must  be  and  are  se- 
cured, in  the  great  centers,  who  will  devote  their 
time  to  this  work.  ■  The  school  must  have  expert, 
practical  instruction  if  it  is  to  be  a  permanent  in- 
stitution, and  it  can  afford  to  employ  only  those 
instructors  who  have  made  a  marked  success  of 
the  very  line  which  they  essay  to  teach.  This 
entirely  eliminates  from  the  correspondence  school 
ranks  the  purely  theoretical  instructor,  and  puts 
in  his  place  the  man  who  has  himself  done  the 
thing  in  a  notably  successful  manner. 

You  do  not  find  successful  writers  teaching  lit- 
erature in  resident  schools.  You  find,  rather,  those 
educationally  fitted  to  appreciate  good  literature, 
inculcating  this  same  appreciation  in  the  minds  of 
a  rising  generation.  The  resident  school  clings 
throughout  to  the  theory;  the  correspondence 
school,  to  the  fact. 


People  of  all  Classes 
Study  by  Extension  Methods 


In  a  correspondence  school,  students  are  drawn 
from  every  quarter  of  the  globe  and  every  element 
of  society.    Convicts  in  prison*  prepare  by  corre- 


LASALLE  EXTENSION  UNIVERSITY.  CHICAGO,  ILL. 


WE  MAKE  YOUR  HOME  A  UNIVERSITY 


epondence  for  the  day  of  their  return  to  the  world ; 
sailors  under  tropical  skies,  dreaming  of  home,  get 
ready  to  earn  their  living  on  land;  Chinamen,  Jap- 
anese, Indians — representatives  from  every  country 
of  the  Orient;  and  Englishmen,  Frenchmen,  Ger- 
mans, Scotch,  Irish,  Welsh — students  in  every  coun- 
try in  Europe — are  preparing,  by  correspondence 
with  American  schools,  for  a  higher  order  of  work 
In  their  own  line  or  for  a  new  line  altogether.  For- 
eigners in  America  take  this  means  of  perfecting 
their  English,  and  foreigners,  contemplating  a  re- 
moval to  America,  prepare  in  this  manner  for 
American  methods  of  doing  business.  The  corre- 
spondence school  is  the  world's  educator,  in  special 
lines. 

It  is  altogether  possible,  also,  for  one  to  acquire 
a  complete  general  education  in  this  manner,  if  he 
desire,  and  many  ao  so;  but  the  great  strength  and 
splendid  usefulness  of  the  correspondence  school 
lies  in  the  fact  that  the  lone  sheep  herder  far  off 
on  the  plains  of  Australia,  while  watching  his 
sheep,  can  prepare  for  a  position  as  a  short  hand 
reporter,  and  when  his  sheep  are  sold  go  down 
into  a  city  and  get  a  position  for  the  summer  or 
winter  months,  as  he  may  choose,  perhaps  changing 
his  occupation  and  manner  of  life  entirely.  A  mis- 
sionary, losing  her  health  in  far-off  India,  can 
study  engraving,  and  be  ready  when  she  returns 
to  her  earlier  home,  and  her  health  has  improved, 
to  accept  a  good  paying  position.  She  need  not 
feel  the  gnawing  pain  of  dependence.  The  ranch- 
er's daughter,  hungering  for  a  sight  of  the 
great  world  beyond  the  wide  plains  and  the  purple 
hills,  can  learn  proof-reading,  and  when  she  has 
saved  a  few  dollars,  enough  to  take  her  to  a  city, 
she  will  not  be  reduced  to  menial  work,  a  position 
in  some  kitchen,  or  to  poorly  paid  factory  toil; 
she  will  be  qualified  to  do  something  that  brings  a 
living  wage  in  the  market  of  toilers.  The  small 
town  youth,  dreaming  of  making  his  fortune  in  a 
city,  can  learn  any  one  of  a  dozen  or  more  lines — 
advertising,  letter-writing,  court  reporting — it  is 
needless  to  mention  them — and  go  to  the  city 
equipped  to  accept  a  position  that  will  keep  him 
among  men  who  are  not  his  inferiors.  A  man 
while  holding  a  position  as  salesman,  stenographer, 
bookkeeper,  clerk,  office  assistant,  etc.,  can  prepare 
for  another  better  paying  position  or  a  more  con- 
genial line.  Professional  men,  who  find  themselves 
unsuited  to  their  professions,  adopt  this  method  of 
securing  business  training.  It  is,  in  short,  the 
great,  silent,  secret,  transfer  system,  by  which  men 
and  women  are  enabled  to  go  about  their  business, 
and  at  the  same  time  grow  into  another  business, 
or  greater  efficiency  in  the  line  they  are  pursuing. 


The  Cost  is 
Reduced  Ninety  Per  Cent 


A  sheepskin  from  a  college  will  not  necessarily 
do  these  things  for  a  man  or  a  woman  and,  further- 
more, the  possession  of  the  sheepskin  argues  the 
possession  of  a  certain  degree  of  financial  support. 
A  man  can  thoroughly  master  a  subject  by  corre- 
spondence at  easily  a  tenth  of  the  cost  of  learning 
the  same  thing  at  a  resident  school.  He  learns 
while  pursuing  his  regular  duties,  whatever  they 
may  be.  To  attend  the  resident  school  he  must  be 
in  close  proximity  to  one — which  the  majority  are 
not — and  must  have  his  time  to  devote  to  the 
course. 


The  Man  who  Knows  Wins 


A  man  is  never  hired  to  fill  a  position  according 
to  his  grades  received  at  college  or  for  the  sake  of 
his  diploma.  He  is  employed  because  he  has  beea 
able  to  impress  an  employer  with  the  idea  that  he 
can  do  the  work.  After  being  employed,  if  he 
makes  good  he  is  retained;  if  not,  he  is  dropped. 
And  the  thoroughness  with  which  he  has  mas- 
tered the  doing  of  that  particular  line  of  work 
determines  how  he  shall  handle  the  duties  incum- 
bent upon  him. 

To  sum  up,  the  advantages  of  the  correspondence 
school  over  the  resident  school,  as  I  find  them — 
and  I  have  had  much  experience  in  the  best  schools 
of  both  kinds — lies  in  the  fact  that  the  correspond- 
ence school  course  is  more  on  the  order  of  an  in- 
vestment. The  student  pays  the  fee  to  learn  to  do 
a  certain  thing,  and  the  only  object  in  taking  the 
course,  in  making  the  investment,  is  to  accomplish 
that  undertaking.  The  sole  aim  at  the  correspond- 
ence school  is  to  perfect  him,  individually,  in  that 
which  he  attempts  to  learn;  while  in  the  resident 
schools,  students  are  sent  more  often,  as  a  matter 
of  course,  by  the  parents.  There  are  many  divert- 
ing avenues  to  draw  their  attention.  The  instruc- 
tion cannot  be  so  individual  and  personal.  The 
student  can  slip  through  without  a  thorough  mas- 
tery of  that  which  he  is  supposed  to  learn.  Favor- 
itism and  personal  likes  and  dislikes  have  their 
influence.  The  success  of  the  school  does  not  de- 
pend on  the  student's  later  application  of  knowl- 
edge gained,  because  the  school  does  not  hold  itself 
responsible  for  the  student's  success;  the  corre- 
spondence school  makes  itself  so  responsible. 


LASALLE  EXTENSION  UNIVERSITY,  CHICAGO,  ILL. 


CONVERT  YOUR  SPARE  MOMENTS  INTO  DOLLARS 


What  You  Can  Do  With 


A  MARGIN  OF  FIFTEEN  MINUTES  A  DAY 

Read  This  Interesting  Article  By  Thomas  Tapper 

Written  for  The  Chicago  Examiner 


"Up  to  the  very  moment  when  the  silver  cord  is 
loosened  and  the  golden  bowl  is  broken,  and  the 
spirit  returns  whence  it  came,  a  man's  never-ceas- 
ing duty  is  to  let  himself  out.  Whatever  the  main 
stream  of  his  labor  is,  he  should  so  master  his 
environment  that  the  great  watersheds  of  life 
about  him  (the  Present  and  behind  him  (the 
Past) )  will  send  into  the  main  stream  as  many 
contributory  rivulets  as  possible. 

"We  will  call  the  stream  his  business,  the  con- 
tributory rivulets  his  culture.  Gradually  their 
Waters  will  mingle  so  perfectly  that  they  are  in- 
distinguishable. Then  the  man  of  business  is  cul- 
tured, and  he  can  talk  to  you  to  any  length  and 
not  reveal  the  nature  of  his  calling. 

"  'You  are  right,'  says  the  business  man.'  It 
is  all  reasonable,  and  sounds  fine,  but  when  is  a 
man  to  get  time  for  this  desirable  state  of  affairs?' 

''The  answer  to  this  is,  get  it  out  of  the '  waste 
basket;  out  of  the  odds  and  ends  of  time  that  are 
thrown  away  every  day.  There  is  no  man  living^ 
who  cannot  devote  to  cultural  ends  one  ninety- 
sixth  of  his  time  in  twenty-four  hours.  Just  a 
shade  more  than  one  per  cent. 

"One-ninety-sixth  of  twenty-four  hours  is  fifteen 
minutes,  to  be  had  either  uninterruptedly,  or  in 
three  sections  of  five  minutes  each. 

"But  what  can  a  man  do  in  bo  little  time? 

"Few  men  realize  that  when  they  deposit  money 
for  interest-earning,  they  must  also  deposit  time. 
What  time  can  do  to  a  5-cent  piece  deposited  daily 
for  fifty  years  is  amazing.  It  gives  a  new  point 
of  view  to  a  5-^ent  smoke,  a  5-cent  glass  of  beer, 
or  a  5-cent  piece  spent  for  any  of  the  merry-life 
temptations.  Wh&t  makes  the  result  incredible  is 
the  time  plus  the  regularity  of  deposit. 


"Now,  fifteen  minutes  a  day  amounts  approxi- 
mately to  ninety-two  hours  in  one  year.  If  you 
will  pick  up  any  volume  of  good  literature  and 
read  its  pages  deliberately,  pronouncing  every 
word,  and  giving  thought  to  the  author's  meaning, 
you  will  find  that  you  can  read  in  fifteen  minutes 
about  3,000  words. 

"This  amount  of  reading  performed  daily  for  one 
year  gives  an  aggregate  of  over  1,000,000  words,  or 
5,000  pages  averaging  200  words  per  page,  or 
twenty-five  volumes  of  200  pages  each.  In  ten 
years  this  amounts  to  250  volumes. 

"Now,  this  use  of  fifteen  minutes  per  day  as  ap- 
plied to  books  will  work  with  the  same  accumu- 
lative interest  when  applied  to  anything  else.- 

"3ut  let  us,  for  the  sake  of  true  culture,  the  deep 
and  lasting  kind,  assume  that  one-third  of  our 
fifteen  minutes  must  be  devoted,  by  and  large,  to 
reading  the  hard  places  a  second  and  a  third  time, 
to  looking  up  words  we  do  not  understand.  Even 
then,  in  a  twelvemonth,  a  man  can  read  intensively 
seventeen  volumes  of  200  pages  each,  or  more  than 
170  volumes  in  ten  years. 

"Jhe  secret  lies,  however,  not  in  the  general 
desire  to  do  this,  but  in  DOING  IT,  and  in  doing 
it  with  regularity.  In  time,  interest  begins  to 
accumulate  in  the  form  of  scholarships,  this  swells 
the  principal,  and  you  move  on  more  rapidly.  The 
very  culture  that  comes  from  your  effort  to  liberate 
yourself  through  the  Labor  required  by  Education 
gives  you  an  intellectual  momentum  that  permits 
more  on  the  future  than  seeris  possible  at  the 
beginning. 

"As  an  intellectual  retreat  for  old  age,  these 
daily  portions  of  an  hour  will  erect  for  you  a 
mansion  which  could  not  be  built  with  all  the 
gold  and  silver  of  the  realm." 


DEPARTMENTS 


Business  Administration 
Law  and  Procedure 

Commercial  Law 
Interstate  Commerce 


Effective  Business  English 
Higher  Accountancy 

Effective  Public  Speaking 
Commercial  Spanish 


Banki 


idF 


ing  and  rinance 


LASALLE  EXTENSION  UNIVERSITY,  4046  Michigan  Ave. 

CHICAGO,  ILL. 


LaSalle  Extension  University  47 

Industrial  Organization  and  Management 

Every  business  man  will  admit  that  there  is  a  proper 
way  of  organizing  his  business ;  also,  that  it  is  as  necessary 
to  keep  in  touch  with  the  best  systems  of  management  as  to 
maintain  connections  with  a  good  bank. 

That  ever-recurring  problem  of  systems  of  wage  pay- 
ment, for  example,  is  only  one  in  a  thousand  that  is  worry- 
ing a  great  many  business  men  :  Shall  it  be  time  work,  piece- 
work, premium  payment,  task  and  bonus,  or  profit-sharing? 

Industrial  Organization  and  Management  treats  such 
problems  in  management  in  a  thoroughly  scientific  way  not 
only  for  the  manager  and  department  heads,  but  for  all 
members  of  business  and  manufacturing  organizations  who 
expect  to  have  a  share  in  directing  the  conduct  of  its  af- 
fairs. 

The  author  recognizes  that  efficient  management  de- 
mands the  co-ordination  of  shop  management  with  general 
organization  accounting,  buying,  selling,  and  advertising. 
This  intimate  interrelation  between  the  different  parts  of  a 
business  enterprise  is  constantly  emphasized. 

The  methods  of  the  most  successful  modern  business  en- 
terprises are  analyzed  for  the  purpose  of  determining  the 
underlying  principles  of  their  success.  Illustrations  and 
forms  are  used  freely  to  explain  and  guide  the  work. 

The  subjects  are  treated  from  the  point  of  view  of 

a  practical  factory  superintendent  who,  though  now 

a  college  professor  and  extension  lecturer,  continues 

to  give  the  benefit  of  his  experience  as  a  consultant 

in  installing  methods  of  management. 

The  leading  division  headings  are  principles  of  business 
organization ;  types  of  organization ;  internal  organization ; 
manufacturing  plants  and  equipment ;  purchasing ;  receiving 
and  store-keeping;  the  planning  of 
work;  the  philosophy  of  cost  accounts ; 
methods  of  collecting  material  and 
labor  costs:  the  distribution  of  the  ex-f 
pense  burden ;  standardization ;  prin-p 
ciples  of  scientific  management;  time" 
and  motion  studies;  welfare  and 
betterment  work;  control  of  labor; 
method  of  paying  employes ;  records 
and  reports  for  executives. 


48 


Business  A dminist ration 


Money  and  Banking 


H.  PARKER  WILLIS,  Ph.D. 

Secretary,   Federal   Reserve 

Board 


Dr.  Willis  is  especially  well  qualified  to 
write  upon  money  and  banking.  He  was 
trained  in  some  of  the  best  colleges  and  uni- 
versities in  this  country  and  in  Europe  and 
then  taught  Economics  for  a  number  of  years, 
specializing  in  Finance. 

During  all  this  time  he  was  preparing 
himself  as  an  expert  by  studying  money  and 
banking  problems  and  by  practical  work  in 
the  field.  He  was  Assistant  to  the  Indian- 
apolis Monetary  Commission  and  joint  author 
of  its  report;  Expert  of  the  Ways  and  Means 
Committee  of  the  House  of  Representatives, 
Washington,  1911-13;  Expert  of  the  Banking 
and  Currency  Committee  of  the  House  of 
Representatives,  1912-13,  in  which  capacity 
he  did  much  to  shape  the  character  of  the 
Federal  Reserve  Banking  System.  He  is  now 
Secretary  of  the  Federal  Reserve  Board. 

This  section  on  Money  and  Banking  was 
prepared  for  us  before  the  Federal  Reserve 
System  was  established.  Dr.  Willis  has  now 
completely  rewritten  and  enlarged  the  work 
so   as  to   include   all   the   latest  developments. 


A  BRIEF  TOPICAL  OUTLINE 


Importance  and   Principles  of  Sound   Money 

The  Gold  Standard  Monetary  System  of  the  United  States 

Banks  and  Their  Functions 

Classes  and  Systems  of  Banks  Deposits  Checks 

Clearing  Notes  Loans  Endorsements  Collateral 

Clearing  Houses  Banking  as  a  Business 

Trust  Companies  Foreign  Exchange 

Officers  and  Directors  of  a  Bank  and  Their  Obligations 

Bank  Statements  and  Their  Significance 

Banking  Statistics  in   Relation   to   Business  Conditions 

Importance  of  Good  Banking  Connections  in  Business 

The  Federal  Reserve  Act  and  Its  Operation 


LaSalle  Extension  University  49 

Money  and  Banking 

Have  you  ever  thought  how  intimately  related  the  sub- 
ject of  money  and  banking  is  to  Business  Administration? 

Many  a  business  man  does  not  know  how  to  deal  intelli- 
gently with  a  bank.  The  result  is  that  the  banker  places  a 
low  value  upon  his  ability,  restricts  his  borrowing  power, 
and  thus  handicaps  him  in  the  development  of  his  business. 

A  knowledge  of  the  services  which  a  bank  is  prepared  to 
render  and  of  the  best  methods  of  availing  one's  self  of  these 
services  is  indispensable  to  the  largest  success  in  business. 
The  business  man  uses  the  bank  daily  to  deposit  or  borrow 
money,  purchase  exchanges,  discount  notes,  collect  bills, 
consult  on  financial  matters,  and  use  its  other  valuable  serv- 
ices. 

Many  successful  business  men  serve  as  officers  and  di- 
rectors in  banks.  The  law  holds  them  strictly  accountable 
for  the  conduct  of  the  institution  for  which  they  stand  spon- 
sor. How  can  they  discharge  these  duties  or  pass  intelli- 
gently upon  the  acts  of  subordinates  without  a  thorough 
knowledge  of  the  principles  of  money  and  banking! 

The  section  on  money  treats  of  such  topics  as  money,  its 
functions  and  the  principles  determining  its  value;  credit 
and  its  meaning  in  modern  business ;  the  relation  of  money 
and  credit  to  prices  and  the  rate  of  interest;  money  and 
panics ;  a  description  of  the  monetary  system  of  the  United 
States. 

The  section  on  banking  treats  of  such  topics  as  the  func- 
tions of  a  bank ;  the  elements  of  banking  operations ;  analy- 
sis of  a  bank  statement ;  the  banking  system  of  the  United 
States;  state  banking;  branch  banks; 
credits  and  loans;  savings  banks; 
trust  companies;  clearing  house;  the 
Federal  Reserve  System. 

All  of  these  matters  are  treated 
from  the  standpoint  of  their  practical 
application  to  business  affairs.  They 
contain  money-making  and  money- 
saving  ideas. 


50 


Business  Administration 


Investments  and  Speculation 


LOUIS     GUENTHER 

Editor,  The  Financial 

World 


In  1903  Mr.  Guenther  started  The  Finan- 
cial World  in  New  York  to  discuss  invest- 
ments in  a  manner  that  could  be  readily- 
understood  by  the  masses.  Through  the 
columns  of  this  paper  Mr.  Guenther  has 
waged  relentless  warfare  against  all  kinds 
of  investment  frauds  and  has  given  in- 
structive   advice    upon    sound    investments. 

Get-rich-quick  plunderers  realized  that  if 
they  were  to  continue  to  prosper  in  their 
illegitimate  business,  they  must  first  get  rid 
of  The  Financial  World.  They  attempted  to 
destroy  the  influence  of  the  paper  among  in- 
vestors by  spreading  all  sorts  of  slanderous 
and  libelous  reports.  Finally  in  a  suit  against 
one  of  these  companies  for  repeating  their 
libelous  charges,  Mr.  Guenther  recovered  a 
verdict  of  $17,000. 

Mr.  Guenther  has  had  special  opportuni- 
ties to  get  inside  information  concerning  in- 
vestment methods.  He  is  a  fearless  writer 
and  an  authority  upon  these  subjects.  In  his 
work  on  Investments  and  Speculation  he  has 
given  us  the  benefit  of  his  knowledge  and 
experience. 


A  BRIEF  TOPICAL  OUTLINE 

The  Relation  of  Investment  and  Speculation 
The  Element  of  Risk  Farm  Loans  and  Mortgages 

Bank  Loans  Insurance  Company  Loans 

Maximum  Loans  on  Land  City  Real  Estate 

Titles  to  Real  Estate  Leasehold  Bonds 

Coupon  and  Registered  Bonds 

Mortgage  Bonds  Income  Bonds  Collateral  Bonds 

Debenture  Bonds  Government  Bonds 

Public  Service  Corporation  Bonds  Irrigation  Bonds 

Mining  and  Timber  Bonds  Guaranteed  Stock 

Valuation  of  Bonds  The  Mystery  of  a  Balance  Sheet 

Stock  and  Produce  Exchanges 

Trading  on  Margin  Call  Loans  Bulls  and  Bears 

Puts  and  Calls  Curb  Markets 

Panics  Business  Barometers 


LaSalle  Extension  University  51 

Investments  and  Speculation 

Why  is  a  knowledge  of  investments  and  speculation  valu- 
able to  a  business  man? 

Because  the  element  of  risk  and  uncertainty  is  always 
present. 

It  is  a  well-known  fact  that  millions  of  dollars  are  lost 
every  year  in  this  country  through  unwise  investments  in 
wild-cat  promotions  and  stock-gambling  propositions. 

This,  however,  represents  only  one  side  of  the  case. 
Bradstreet's  list  of  business  failures  records  losses  of  a 
much  larger  total,  in  which  earnest,  sincere,  conscientious, 
business  men  and  women  from  every  hamlet,  town,  city,  and 
county  in  the  United  States,  have  lost  their  savings  because 
they  invested  in  unsound  business  enterprises.  These  costly 
blunders,  and  many  others  never  recorded,  may  be  avoided 
by  a  knowledge  of  the  underlying  principles  of  judging  in- 
vestment values  which  are  presented  in  this  book. 

Every  one  ivho  has  funds  to  invest  or  money  with 
which  to  speculate  seeks,  mainly,  two  things:  profit 
and  security.  It  is  of  these  two  all-important  points 
that  the  booh  treats.  It  shows  how  to  make  money 
work  most  effectively  for  its  owner. 

The  work  gives  also  a  scientific  discussion  of  the  finan- 
cial forces  and  movements  which  determine  business  pros- 
perity or  depression.  The  explanation  of  business  barome- 
ters will  enable  a  business  man,  in  most  cases,  to  anticipate 
business  tendencies  intelligently  rather  than  to  wait  blindly 
and  defenselessly  for  them  to  crush 
upon  him.  Take,  for  instance,  just 
one  point:  "What  does  "banking  re- 
serves above  normal''  mean  to  you  in 
your  business? 

Many  other  subjects  are  explained 
which  the  careful  investor  should 
know.  A  knowledge  of  these  princi- 
ples is  the  safest  and  cheapest  insur- 
ance against  capital  losses  that  any 
business  man  or  investor  can  carry. 


52 


Business  Administration 


Organizing  a  Business 


MAURICE     H.     ROBINSOIV 

Ph.D.,  Professor  of  Industry 

and      Transportation, 

University  of  Illinois 


Professor  Robinson  received  the  B.  L. 
and  M.  A.  degrees  from  Dartmouth  College  and 
then  took  his  Ph.  D.  degree  at  Yale.  He  has 
been  Professor  of  Industry  and  Transportation 
at  the  University  of  Illinois   since  1902. 

Professor  Robinson  is  also  Associate 
Editor    of    the    Journal    of    Accountancy.      He 

has  been  a  special  expert  agent  for  the 
Census  Bureau  and  has  served  in  an  advisory 
capacity  in  various  relationships. 

He  is  a  member  of  the  American  Eco- 
nomic Association,  The  American  Political 
Science  Association,  and  The  Efficiency  Society. 
Professor  Robinson,  besides  having  prepared 
our  section  on  Organizing  a  Business,  is 
author  of  A  History  of  Taxation  in  New 
Hampshire,  Business  Organization  and  Man- 
agement, and  numerous  articles  relating  to 
railways  and   corporations. 


A  BRIEF  TOPICAL  OUTLINE 

Factors  of  Wealth  Production— Land,  Labor,  Capital, 

Management 

Methods  of  Conducting  Business— Communism,    Socialism, 

Co-operation,    Private   Ownership 

Individual  Proprietorship  The  Partnership 

Articles  of  Co-Partnership  Joint  Stock  Companies 

Mining  Partnerships  The  Corporation 

Common  and  Preferred  Stock 

Issued  and  Unissued  Stock  Treasury  Stock 

Full-Paid  and  Non-Assessable  Stock 

The  Corporation  Books  and  Records 

The  Charter  By-Laws  Resolutions 

The  Officers  and  Directors  of  a  Corporation 

Combinations  and  Trusts  The  Holding  Company 

Comparative   Efficiency   of   the   Various  Types    of   Organization 

The  Principal  Forms  Used  in  Conducting  Business  Affairs 


LaSalle  Extension  University  53 

Organizing  a  Business 

In  organizing  a  business  enterprise  what  type  of  organi- 
zation shall  I  use! 

Shall  it  be  an  individual  proprietorship,  a  partner- 
ship, a  joint  stock  company,  or  a  corporation?  What 
are  the  advantages  and  disadvantages  of  each  form 
of  organization! 

Shall  we  join  with  other  business  enterprises  in 
an  association,  pool,  trust,  or  holding  company!  If 
so,  how!  What  are  the  limitations  of  each  form  of 
association? 

How  can  I  draw  up  a  good  partnership  agreement 
or  judge  intelligently  what  my  lawyer  should  include 
in  such  a  contract! 

What  are  the  essential  features  of  a  charter,  the 
by-laws,  the  rights,  duties,  and  obligations  of  officers 
and  directors  of  a  corporation,  and  the  right  methods 
of  procedure  at  a  stockholders'  meeting? 

All  these  and  many  more  problems  in  business  organ- 
ization are  treated  in  this  work.  It  is  a  complete  guide 
to  the  principles  of  business  organisation  and  the  transac- 
tion of  all  corporate  affairs. 

It  is  an  aid  that  every  business  man  needs  for  frequent 
reference — a  work  that  an  officer  or  director  of  a  corpora- 
tion would  want  by  his  side  at  a  stockholders'  meeting. 

This  section  treats  these  subjects  in  the  following  order : 
the  nature  of  organization ;  individual  proprietorship ;  the 
partnership;  the  corporation;  the 
formation  of  a  corporation;  the 
charter ;  the  by-laws ;  rights  and 
obligations  of  bondholders,  stock- 
holders, and  creditors;  the  officers  and 
directors  of  a  corporation;  business 
combinations  and  trusts ;  comparative 
efficiency  of  different  types;  and  the 
leading  forms  used  in  business  organ- 
ization. 


54 


Business  Administration 


Financing  a    Business 


"Credit 

has    done 

more,   a 

thousand 

times, 

to    enrich 

nations 

than    all 

the    mines    of    the 

world." 

Daniel  Webster 

The  author  of  the  section  on  Financing 
a  Business  has  been  for  many  years  the  editor 
of  The  Bankers  Magazine,  the  leading-  bank- 
ing monthly  of  the  country.  A  man  who  can 
write  for  the  bankers  of  this  country  and 
command  their  respect  must  be  an  authority 
upon  finance  and  his  services  should  make  a 
good  addition   to   any   business. 

Mr.  Youngman  is  also  the  editor  of  Knox's 
History   of   Banking  in  the  United  States   and 

is    author    of    the    book    on    Credit    Currency, 

widely   distributed  by  the  American   Bankers 
Association. 

Leading  commercial  and  banking  associ- 
ations recognize  Mr.  Youngman's  abilities  and 
frequently  call  upon  him  for  addresses.  He 
was  an  expert  witness  before  the  Currency 
Committee  of  the  House  of  Representatives 
of  the  United   States   Congress. 

His  ability  and  experience  are  at  your 
service  in  this  work. 


A  BRIEF  TOPICAL  OUTLINE 


Requisites  of  a  Successful  Business  Enterprise 

Demand  Competition  Patents  Trade-Marks 

Monopoly  Secret  Processes  Location 

Character  of  Management  Amount  of  Capital 

Fixed  Capital  Working  Capital  Surplus 

Margins   of  Financial  Safety  Methods   of   Raising  Capital 

Stocks  Bonds  Wasting  Assets  Loans 

Where  and  How  to  Get  Money 

Personal  Credit  Collateral 

How  to  Present  Your  Proposition  for  Credit 

New  Capital  Financing  Out  of  Income 

Privileged  Subscriptions  Premiums  on  Stock 

Policies   with    Respect   to    Profits,    Dividends,    and    Surplus 

How  to  Handle  Finances  in  a  Pinch 

Employment  of  Idle  Funds 


LaSalle  Extension  University  55 

Financing  a    Business 

The  success  of  your  business  is  closely  connected  with 
your  methods  of  financing.  Lack  of  capital  is  charged  with 
one-third  of  the  defaults  in  business.  By  concentrating 
their  attention  on  manufacturing,  buying,  or  selling,  and 
ignoring  their  finances,  many  business  concerns  have  been 
compelled  to  liquidate,  when  perhaps  actually  solvent. 

Ability  to  develop  new  business  enterprises,  to  take  ad- 
vantage of  opportunities,  to  expand  business,  to  meet  com- 
petition successfully,  to  save  your  business  in  times  of  finan- 
cial distress,  is  largely  dependent  upon  how  you  use  your 
resources.  Skill  in  finance  enabled  Mr.  Harriman  to  perfect 
the  great  Union  Pacific  Railroad  system. 

Financing  a  Business  explains  the  best  methods  for  con- 
ducting your  business  on  safe  financial  principles  and  for 
getting  in  touch  with  the  sources  of  business  credit.  Every- 
thing depends  upon  the  right  solution  of  these  problems. 

There  are  primarily  four  ways  of  securing  capital:  (1) 
by  gift;  (2)  by  saving — producing  more  than  spending; 
(3)  by  borrowing — bank  and  mercantile  credit;  (4)  by  tak- 
ing in  capital — partnership  or  corporation  association. 

This  section  shows  when  to  use  each  and  exactly  how 
to  present  a  business  proposition  as  a  basis  for  securing 
funds  under  each  plan.  Even  the  builder  of  a  small  home 
will  find  specific  instructions  as  to  the  best  methods  of  se- 
curing the  necessary  capital. 

Financing  a  Business,  furthermore,  treats  of  such  prac- 
tical questions  as  how  to  secure  personal  credit,  how  to  use 
collateral,  how  to  secure  bank  co- 
operation, how  to  judge  of  the  pre- 
requisites of  financial  success  in  an 
enterprise,  the*  ratio  of  fixed  to  working  I 
capital,  margins  of  financial  safety,  /; 
the  use  of  surplus,  presenting  an  enter-  j 
prise  to  the  investors,  when  to  use 
stocks  and  when  to  use  bonds  and  in 
what  proportion  each,  promoters,  un- 
derwriters, brokers,  and  bond  houses. 


56 


Business  Administration 


Advertising 


E.   H.   KASTOR 

Of   H.   W.   Kastor   &   Sons 

Advertising  Company 


Mr.  E.  H.  Kastor  has  for  the  past  twenty- 
years  been  a  member  of  the  firm  of  H.  W. 
Kastor  &  Sons  Advertising  Company,  Chicago. 
This  concern  handles  annually  millions  of 
dollars'  worth  of  advertising  of  every  nature. 

Mr.  Kastor  has  had  a  remarkable  training 
and  business  experience  along  advertising 
lines — all  of  which  has  helped  him  to  become 
the  much  sought-after  authority  that  he  is 
among  business  men. 

He  has  been  a  traveling  salesman,  mer- 
chandising man,  and  cost  clerk  for  a  large 
concern.  In  these  capacities  he  became 
intimately  acquainted  with  goods — their 
purchasing,  pricing,  and  selling  qualities. 
Finally,  as  sales  manager,  he  has  learned 
from  first-hand  experience  the  real  selling 
problems   that   underlie   business   success. 

As  an  advertising  man  Mr.  Kastor  has 
occupied  at  one  time  or  another  the  positions 
of  campaign  man,  copy  man,  idea  man,  plan 
man,  and  layout  man.  He  has  a  technical 
knowledge  of  the  mechanical  end  of  adver- 
tising, printing,  and  allied  branches. 


A  BRIEF  TOPICAL  OUTLINE 


Relation  of  Advertising  to  Sales  Advertising  Policies 

"Reason  Why"  and  "Human  Interest"  Copy 

Advertising  Campaign  Space  Position  Contrast 

Illustrations  Ornament  Type  Stock 

Attention,   Desire,   and  Conviction 

Circulars  Catalogues  The   Folder 

Street-Car  Advertising  Billboards  Novelties 

Booklets  Layout  Trade  Magazines  Containers 

Technical  and  Trade  Publications  The  Follow-up 

Advertising  in  Newspapers  and  Magazines 

How  to  Test  an  Advertisement  Pitfalls  of  Advertising 

The  Psychology  of  Advertising         Advertising  Agents 


LaSalle  Extension  University  57 

Advertising 

Advertising  may  be  divided  into  two  great  divisions : 

1.  That  which  deals  with  the  mechanics  of  ad- 
vertising ; 

2.  That  which  deals  with  problems  and  policies. 

A  good  business  man  must  be  able  to  pass  discriminat- 
ingly upon  both  of  these  problems. 

Copy  comes  to  him.  Can  he  tell  at  a  glance  whether 
it  is  mechanically  correct?  Can  he  give  specific  directions 
to  the  printer  concerning  the  lay-out,  spacing,  type  styles 
and  sizes,  borders  and  general  design? 

Students  of  the  psychology  of  advertising  have  empha- 
sized the  importance  of  design  in  its  effect  upon  the  human 
mind.  It  gives  the  first  impression.  Composition  for  effect- 
ive advertising  is  based  upon  certain  fundamental  prin- 
ciples of  design.  These  principles  have  been  developed  to 
the  point  where  a  given  expenditure  upon  an  advertising 
campaign  may  be  counted  upon  to  bring  given  results. 

Every  successful  advertisement  must  do  three  things: 

1.  It  must  get  the  attention  of  the  consumer. 

2.  It  must  secure  and  sustain  the  interest  of  the 
reader  until  the  appeal  or  presentation  has  been 
made. 

3.  It  must  get  results  by  provoking  a  favorable 
response. 

These  attention-getting ,  interest-exciting,  and  action- 
getting  qualities  are  presented  so  clearly,  concretely,  and 
specifically  that  they  can  be  adapted  by  you  to  your  busi- 
ness. The  factors  that  enter  into  each 
of  these  qualities  have  actually  been 
measured  as  to  their  strength  and 
persuasiveness.  Do  you  want  to 
know  what  they  are? 

Without  a  good  knowledge  of 
advertising,  a  business  man  falls  a 
prey  to  incompetent,  so-called  ' '  adver- 
tising advisers";  with  it  he  is  master 
of  the  situation. 


58 


Business  Administration 


Retail    Merchandising 


PAUL,  H.  JiEYSTROM,  Ph.D. 
Associate    Professor    of 

Economics 
University  of  Minnesota 


A  certain  prominent  magazine  has  char- 
acterized Dr.  Neystrom  as  the  keenest 
student  and  greatest  authority  in  America 
on  retail  merchandising  problems. 

Mr.  Neystrom  has  made  merchandising 
his  specialty.  He  has  not  only  had  years  of 
experience  as  a  country  merchant,  but  has 
studied  merchandising  and  every  phase  of 
store  management  in  some  of  the  leading 
retail  establishments   of  the  country. 

The  ability  of  Mr.  Neystrom  is  recognized 
everywhere.  He  is  now  Associate  Professor 
of  Economics  at  the  University  of  Minnesota, 
in  charge  of  the  courses  in  Merchandising. 
Other  state  universities  and  commercial 
organizations  are  using  his  services  for  their 
short  courses  in  Merchandising.  He  has  been 
Sales  Instructor  in  a  number  of  large  depart- 
ment stores.  State  and  federal  commissions 
have  consulted  Mr.  Neystrom  as  an  authority 
upon  these  problems. 

In  this  work  on  Retail  Merchandising  he 
presents  the  recognized  principles  of  suc- 
cessful merchandising. 


A  BRIEF  TOPICAL  OUTLINE 


The  Problems  of  Store  Management 

Employment  of  Sales  People  and  Other  Help 

Remuneration  of  Employes  Training  of  Employes 

Retail  Store  Buying  Merchandise  Control 

Slow  Turning  and  Fast  Turning  Lines 

Cost  of  Doing  Business  Profit  by  Lines 

Intelligent   Pricing  Mark-Downs  Charge   Sales 

Multiplying  Gross  Sales  Quicker  Collections 

Knowledge  of  Goods  Selling  Plans  and  Methods 

Use    of   Windows    and    Display   Space   to    Best   Advantage 

Advertising  Management  Delivery  Service 

Credit  Management 

The  Essentials  of  a  Good  Accounting  System 

Meeting  Competition  Chain  Stores  Mail  Order 


LaSalle  Extension  University  59 

Retail    Merchandising 

The  merchandising  business,  next  to  agriculture,  repre- 
sents the  largest  number  of  business  interests  in  this  coun- 
try. Every  state  has  thousands  of  store  managers  trying 
to  solve  successfully  the  problems  of  the  retail  store.  Yet 
statistics  of  failure  show  that  by  far  the  largest  percentages 
of  all  business  mortalities  are  listed  in  this  field.  The  life 
of  the  average  store  is  short. 

Within  recent  years  the  large  mail-order  houses  have 
made  tremendous  inroads  on  the  business  of  retail  stores. 
This  competition  must  be  met  with  intelligent  methods  by 
the  retailers  of  this  country,  working  individually  and  co- 
operatively. 

But  the  interest  in  this  field  is  not  limited  to  the  mer- 
chants themselves.  Consumers  and  producers,  as  buyers 
and  sellers  of  goods,  and  bankers  and  credit  men,  as  grant- 
ors of  credit,  are  actually  interested  in  knowing  how  to 
judge  the  efficiency  of  a  retail  store  or  the  permanency  of 
the  system.  It  is  one  of  the  ever-present  questions  of  mod- 
ern business. 

This  section  on  Bet  ail  Merchandising  is  a  remarkably 
clear  and  keen  analysis  of  the  retail  situation,  by  America's 
foremost  authority  in  this  field.  It  presents  first  of  all  the 
problems  as  they  actually  exist  and  then  shows  how  to  solve 
them  according  to  the  best  experience  and  on  sound  princi- 
ples. 

The  employment,  remuneration,  and  training  of  sales 
people,  retail  buying,  merchandise  control,  advertising  man- 
agement,   store    service,    credit    man-  _____ __ 

agement,  mechanical  equipment,  the 
essentials  of  good  accounting,  systems 
and  methods  of  meeting  competition 
are  among  the  important  subjects 
developed  in  this  interesting  section  | 
of  the  service.  It  penetrates  right 
to  the  heart  of  the  situation  and 
then  shows  how  to  solve  the 
problems. 


60 


Business  Administration 


Credits 


EDWARD   M.   SKINNER 

General  Manager 
Wilson  Brothers,  Chicago 


Mr.  Skinner  began  his  business  career  as 
a  messenger  in  the  wholesale  store  of  Field, 
Leiter  &  Company,  in  1881.  In  1892  he  took 
charge  of  the  credit  department  with  Cluett, 
Koon  &  Company. 

In  1896  Mr.  Skinner  went  with  Wilson 
Brothers,  wholesale  dealers  in  men's  furnish- 
ings, first  as  credit  man  and  then  as  general 
manager,  which  position  he  holds  at  the 
present  time. 

Mr.  Skinner  has  been  very  active  in  pro- 
moting better  business  conditions  in  the  city 
of  Chicago.  He  was  one  of  the  organizers  of 
the  Chicago  Association  of  Credit  Men  and 
later  served  as  its  President.  He  has  been 
President  of  the  Chicago  Association  of  Com- 
merce. 

Mr.  Skinner  is  not  only  an  experienced 
credit  man,  but  also  a  big,  successful  business 
man.  What  he  writes  is  always  practical  and 
very  helpful.  So  is  his  discussion  in  the 
section  on  Credits. 


A  BRIEF  TOPICAL  OUTLINE 


Essential  Factors  in   Determining  Credit  Risks 

Sources  of  Credit  Information  Analysis  of  Credit  Reports 

Analysis  of  Financial  Statements 

Organization  and  Operation  of  Credit  Departments 

Credit  Records  and  Files       Division  of  Work 

Credit  as  a  Source  of  Weakness  in  Many  Industries 

Credit  Associations  Credit  Co-operation 

Credit  Insurance  Banking  Credit  Mercantile  Credit 

Capital  Credit         Installment  Credit         C.  O.  D.  Shipments 

Principles  of  Law  Affecting  Credit  Relations 

Relation  to  Sales  Department 

Relation  to  Collection  Department  Reports 


LaSalle  Extension  University  61 

Credits 

Statistics  show  that  more  than  90  per  cent  of  the  busi- 
ness in  this  country  is  transacted  upon  a  credit  basis. 
Credits,  therefore,  must  be  extended  on  sound  business  prin- 
ciples, or  the  whole  business  structure  will  collapse. 

Three  great  C's  determine  the  true  credit  rating  of  a 
firm;  they  are  Capital,  Capacity,  Character.  They  consti- 
tute a  combination  which  is  not  in  restraint  of  trade.  This 
treatise  shows  how  to  judge  these  factors  in  every  credit 
transaction. 

Then  there  are  the  four  great  divisions  of  credit — 
(1)  capital,  (2)  banking,  (3)  personal,  and  (4)  mercantile — 
with  every  angle  of  which  a  business  man  should  be  familiar. 
The  problems  associated  with  each  of  these  are  ably  pre- 
sented. 

The  section  on  sources  of  credit  information  is  especially 
useful.  In  this  connection  there  is  a  description  of  the  serv- 
ices performed  by  the  great  mercantile  agencies  and  cred- 
itors' associations. 

Credit  protection  is  treated  in  all  its  relationships.  Be- 
fore you  place  any  credit  insurance,  read  this  section  and 
see  whether  you  can  use  it  to  advantage. 

The  credit  manager's  duties,  his  relationship  to  his  em- 
ployer, and  his  methods  of  work,  are  all  explained  for  the 
benefit  of  the  practical  business  man. 

Finally  the  law  affecting  credit  relations  is  presented  so 
simply  and  clearly  that  no  man  need  run  counter  thereto. 

In  view  of  the  thorough  and  com- 
prehensive manner  in  ivhich  the  entire 
subject  of  Credits  is  treated,  busi- 
ness men  generally  ivill  be  quick  to 
appreciate  the  great  practical  value 
of  this  section.  Marny  business 
losses  are  easily  preventable  by 
avoiding  bad  debts  and  spotting  bad 
accounts  in  the  incubator  stage. 


62 


Business  Administration 


Collections 


R.    S.    WHITE 

Collection    Manager 

American    Steel    &    Wire 

Company 


Mr.  White  is  the  collection  manager  of 
the  American  Steel  &  Wire  Company,  a  com- 
pany capitalized  at  $90,000,000. 

Mr.  White  began  his  career  in  the  retail 
hardware  business  and  while  there  began  to 
study  seriously  collection  problems.  He  soon 
became  recognized  as  an  authority  and  ad- 
vanced rapidly  to  the  position  which  he  now 
holds. 

In  all  of  his  busy  life,  Mr.  White  has 
found  time  to  write  numerous  short  articles 
for  the  hardware  trade  journals  and  collec- 
tion magazines  on  collection  topics.  He  fre- 
quently delivers  addresses  before  commercial 
organizations  and  in  Y.  M.  C.  A.  courses  in 
Collections.  He  delights  to  help  others  to  a 
better  knowledge  of  collection   problems. 

The   section   on  Installment  Collections  is 

by  Mr.   H.  E.   Kramer,  an  acknowledged   spe- 
cialist upon  that  subject. 


A  BRIEF  TOPICAL  OUTLINE 


The  Debtor's  Frame  of  Mind  The  Psychology  of  Collections 

Reasons  for  Incurring  the  Debt 

Good,  Bad,  and  Poor  Pay  Collections 

Financial  Caliber  of  Debtor  Terms  of  the  Debt 

Form  of  the  Debt  Rights  of  the  Creditor 

Rights  Modified  by  Custom  or  Expediency  Environment 

Situation  as  to  Source  of  Debtor's  Income  and  Seasons 

Wholesale  and  Retail  Accounts 

Collection  by  Interview,  Mail,  Draft,  or  Legal  Process 

Discounts  Extensions  Limitations  to  Actions 

Co-operative  Collections 

Liquidation  of  Involved  or  Bankrupt  Enterprises 

Use  of  Collection  Agencies  Installment  Accounts 

Records,  System,  Notices,  and  Follow-up 


LaSalle  Extension  University  63 

Collections 

Experience  has  proved  over  and  over  again  that  slack 
collection  methods  cause  business  ruin.  Merchants,  jobbers, 
manufacturers,  physicians,  dentists — all  have  had  the  same 
experience — accounts  tied  up  in  musty  ledgers. 

Competition  has  become  so  keen  that  it  will  no  longer 
tolerate  such  flabby  business  methods.  The  collection  de- 
partment must  hold  a  prominent  place  in  a  business  organ- 
ization rather  than  represent  the  weak  spot.  Accordingly 
we  offer  here  a  treatise  on  effective  collecting  that  will  stop 
the  leaks  in  many  business  enterprises. 

In  our  plan  of  organization  we  recognize  that  a  good  col- 
lection system  must  consider  in  its  procedure  three  funda- 
mentally different  classes  of  collection  accounts : 

(1)  Good 

(2)  Slow  pay 

(3)  Bad 

Each  requires  a  different  treatment  and  a  different  knowl- 
edge of  facts.    An  exact  procedure  for  each  case  is  outlined. 

This  work  discusses  in  all  of  these  relationships  the 
routine  work  of  the  collection  department,  how  to  collect 
small  accounts,  professional  accounts,  and  installment  ac- 
counts. Collection  correspondence  in  all  of  its  bearings  is 
explained.  The  use  of  the  draft,  collection  agencies,  dis- 
counts, justices  of  the  peace,  legal  actions,  and  other  collec- 
tion knacks  are  here  demonstrated  for  the  use  of  the  collec- 
tion man.  The  seven  legal  defenses  are  outlined  for  ready 
reference. 

Special  emphasis  is  laid  throughout  this  section  upon 
the  question  of  how  to  collect  with- 
out    offending     the     customer.      Mr. 
White  presents  some  unusually  good 
methods. 

The  great  subject  of  collections  on 
installment  accounts  is  here  presented 
for  the  first  time  in  a  thoroughly  com- 
petent manner.  Many  business  con- 
cerns need  the  work  for  this  indis- 
pensable feature. 


64 


Business  Administration 


Governmental  Control  of  Carriers 


I.  N.  SHARFMAN 
A.B.,  L.L..B.,  Professor  of 

Political  Economy 
University  of  Michigan 


Mr.  I.  N.  Sharfman  is  the  author  of  the 
section  dealing  with  transportation  and 
traffic  problems.  He  received  his  A.  B.  and 
LL.  B.  degrees  from  Harvard  University,  and 
is  a  member  of  the  Massachusetts  Bar.  From 
1908  to  1910  he  was  Assistant  in  Economics 
at  Harvard  University,  and  from  1910  to  1912 
Professor  of  Law  and  Political  Science, 
Imperial  Pei  Yang  University,  Tientsin, 
China. 

In  1912  Mr.  Sharfman  became  Chief 
Investigator  for  the  Department  on  Regula- 
tion of  Interstate  and  Municipal  Utilities,  The 
National  Civic  Federation. 

As  lecturer  in  Political  Economy,  Mr. 
Sharfman  became  connected  with  the  Uni- 
versity of  Michigan  in  1912.  He  is  at  present 
Lecturer  on  the  Law  of  Contracts,  Depart- 
ment of  Law,  University  of  Michigan,  and 
Professor  of  Political  Economy  at  the  same 
university. 


A  BRIEF  TOPICAL  OUTLINE 


Significance  of  Railroad  Transportation 
Problem  of  Rate-Making  Railroad  Competition 

Nature  of  Railroad  Competition 

Theory  of  Rate-Making  Classification  of  Freight 

Discrimination  in  Rates  and  Service         Reducing  Freight  Charges 

Packing  Freight  Describing  and  Classifying  Freight 

Weights  and  Their  Relation  to  Freight  Charges 

The  Industrial  Traffic  Department  Delivery  Facilities 

Organization   of  Shipping  Department  Routing  Freight 

Public  Regulation  of  Transportation 

Monopolistic  Character  of  the  Railroad  Business 

The  Interstate  Commerce  Commission 


LaSalle  Extension  University  65 

Governmental  Control  of  Carriers 

Transportation  is  the  life-blood  of  business.  It  is  inter- 
woven into  all  processes  of  industry  and  commerce.  It 
vitally  affects  business  economy — profits  and  losses. 

A  manufacturer  recently  lost  $3,000  by  depending  upon 
the  rate  clerk  of  a  railroad  for  a  rate  on  iron  pipe  from 
Chicago  to  a  point  in  the  southwest. 

Every  business  that  does  not  maintain  an  expert  traffic 
manager  could  doubtless  save  large  sums  of  money  by  a 
proper  understanding  of  class,  commodity,  and  through 
rates,  and  by  properly  routing  shipments. 

Transportation  is  the  largest  single  item  of  expense  in 
the  world.  It  costs  over  two  billion  dollars  annually — over 
$25  for  every  man,  woman,  and  child  in  the  United  States — 
five  times  the  surplus  and  capital  of  all  national  banks. 

Men  in  all  lines  soon  learn  to  what  extent  the  prosperity 
of  their  enterprises  depends  upon  transportation  condi- 
tions. Moreover,  many  come  into  relations  with  railroads 
as  stockholders,  bondholders,  or  general  creditors. 

A  knowledge  of  transportation  problems  is  useful,  there- 
fore, both  for  the  purpose  of  effecting  economies  in  freight 
charges  and  for  effectively  directing  the  work  of  a  traffic 
department. 

Governmental  Control  of  Carriers  presents  such  prob- 
lems as  the  significance  of  railway  transportation;  prob- 
lems of  rate-making;  classification  of  freight;  discrimina- 
tion in  rates  and  services ;  the  problems  of  regulation,  both 
state  and  national;  and  many  other  problems  that  an  in- 
telligent business  man  and  citizen 
should  know  about  the  transportation 
business  and  its  relationship  to  the 
public. 

The  LaSalle  Extension  University 
through  its  staff  of  experts  saves  busi- 
ness men  hundreds  of  thousands  of 
dollars.  The  opinions  of  these  experts 
are  available  to  all  subscribers  for 
this  Business  Administration  service. 


66 


Business  Administration 


Ocean  Traffic  and  Trade 


B.    OLNEY    HOUGH 
Editor,    American    Exporter 


Mr.  Benjamin  Olney  Hough  was  educated 
at  the  University  of  Rochester,  New  York. 
Early  in  his  life  he  was  engaged  in  news- 
paper work  and  then  for  six  years  in  manu- 
facturing. 

In  1895  Mr.  Hough  turned  his  attention 
to  the  export  and  shipping  trade,  for  eleven 
years  traveling  widely  in  Latin-America, 
Europe,  the  Orient,  and  Australia.  In  1906 
he  became  Editor  of  the  American  Exporter, 
which   position  he  still  retains. 

As  a  former  manufacturer  and  as  an 
experienced  exporter,  both  from  the  stand- 
point of  the  manufacturer  and  the  commis- 
sion merchant,  Mr.  Hough  is  unusually  well 
qualified  as  an  adviser  on  foreign  commer- 
cial relations.  His  charming  style  is  concise 
and  graphic. 


A  BRIEF  TOPICAL  OUTLINE 


Foreign  Commerce  of  the  United  States 
Liners  and  Tramps  Ship-Registry  Ship   Papers 

Entry  and  Clearance  Terminal  Charges 

Loading  and  Discharging  Ocean  Routes  and  Distances 

Transshipment  Panama  Canal 

Bulk  and  Package  Cargoes  Weight  and  Measurement 

Consular   Invoices  Shipments   from   Interior   In   Bond 

Drawback  on  Re-exported  Foreign  Goods 

Entry  at  Custom  House  Bonded  Warehouses 

Minimum  Bills  of  Lading  Classification  of  Commodities 

Forwarding  Agents  and  Express  Companies 

Marine  Insurance  and  Claims  Foreign  Salesmen 

Local    Resident   Agents  Export  Commission    Houses 

Manufacturers'  Export  Agents         Foreign  Credits  and  Collections 

America's  Opportunities  in  the  Markets  of  the  World 


JLaSalle  Extension  University 


07 


Ocean  Traffic  and  Trade 

The  great  European  War  has  demonstrated  most  forci- 
bly to  American  business  men  the  significance  of  foreign 
trade  to  our  own  prosperity.  It  has  also  shown  how  abso- 
lutely unprepared  American  bankers,  manufacturers,  and 
merchants  were  to  take  advantage  of  the  new  trade  oppor- 
tunities created  by  that  war  in  certain  quarters  of  the  globe. 
It  has  proved  conclusively  that  no  progressive  business  man 
can  afford  to  remain  ignorant  of  these  questions. 

Kecently  a  California  manufacturer  had  an  opportunity 
to  submit  a  bid  on  a  Peruvian  order.  He  overlooked  only 
one  point,  but  that  error  meant  the  loss  of  several  thousand 
dollars.    Exporting  requires  exact  knowledge. 

The  section  on  Ocean  Traffic  and  Trade  is  the  most  com- 
prehensive and  practical  work  issued  upon  the  subject;  it 
is,  in  fact,  the  only  work  covering  the  field  which  it  dis- 
cusses. It  treats  such  important  subjects  as  ocean  carriers, 
shipping  terms  and  documents,  handling  export  and  import 
shipments,  marine  insurance,  shipping  pools  and  agree- 
ments, getting  export  trade,  developing  export  trade,  for- 
eign credits  and  collections,  and  foreign  trade  opportunities. 

In  this  section  the  large  exporter  and  importer 
will  find  a  sound  economic  discussion  and  practical 
solution  of  the  questions  in  which  he  is  most  vitally 
interested. 

The  inland  exporter  will  obtain  information  on 
how  to  pack  and  ship  his  goods  for  export  trade,  how 
to  secure  selling  agents,  how  to  get  his  money  on  the 
shipments,  and  much  other  information  necessary  to 
the  intelligent  conduct  of  export  and  import  busi- 
ness. 
Incorporated  with  this  section  are 

many  important  shipping  papers  and 

documents,   which   have   been   repro- 
duced for  the  benefit  of  the  shipper 

and  traffic  manager,  together  with  the 

finest  and  most  accurate  map  of  the 

trade    routes    of    the    world.      This 

map  was  especially  prepared  for  us 

by    the    leading   map-makers    of    the 

country. 


68 


Business  Administration 


The  Principles  of  Accounting 


"The  rising  man 
must  do  something 
exceptional  and 
beyond  the  range 
of  his  special  de- 
partment." 

Andrew  Carnegie 


Mr.  Henry  Parker  Willis  holds  the  B.  A. 
and  Ph.  D.  degrees  from  the  University  of 
Chicago  and  has  studied  at  the  universities 
of  Berlin,  Leipzig,   and  Vienna. 

He  has  been  Adjunct  Professor  of 
Economics  and  Political  Science  and  Wilson 
Professor  of  Economics  and  Political  Science 
at  Washington  and  Lee  University;  Professor 
of  Finance  and  Dean  of  the  College  of  Politi- 
cal Science  at  George  Washington  University; 
and  Lecturer  at  Columbia  University. 

Mr.  Willis  was  Associate  Editor  of  the 
Journal  of  Accountancy;  Managing  Editor  of 
the  New  York  Journal  of  Commerce;  Author 
of  the  History  of  Latin  Monetary  Commis- 
sions; Reciprocity  (with  J.  L.  Laughlin)  ;  Life 
of  Stephen  Douglas;  and  several  other  works. 
He  has  also  been  a  frequent  contributor  to 
economic  journals. 

In  this  book  on  The  Principles  of  Ac- 
counting he  shows  very  clearly  the  practical 
relationship  of  modern  accounting  to  business 
conduct. 


A  BRIEF  TOPICAL  OUTLINE 


Accounting  and  Modern  Business  Efficiency 

Single  and  Double  Entry  Bookkeeping 

Problems  of  Debit  and  Credit  Books  of  Original  Entry 

Subsidiary  Books  Partnership  Accounts 

Corporation  Accounts  Trial  Balance 

Bills  Payable  and  Bills  Receivable 

Accounts  Payable  and  Accounts  Receivable 

Depreciation   and   Other  Reserves 

Good-Will  Accruals  Contingent  Liabilities 

Collection  Accounts  Columnar  Books 

Correlation  with   Cost  Accounts  Balance   Sheet 

Income  and  Expenditure  Accounts 

Profit  and  Loss  Statement  Executive  Reports 


LaSalle  Extension  University  69 

The  Principles  of  Accounting 

This  is  a  fundamental  treatise  on  Accounting,  which 
emphasizes : 

1.  The  purposes  which  the  science  and  practice  of  ac- 
counting seek  to  accomplish ; 

2.  The  methods  and  means  by  which  these  objects  are 
attained. 

This  information  is  necessary  for  an  intelligent  concep- 
tion of  a  business  to  the  various  parties  directly  interested, 
namely : 

(1)  owners 

(2)  managers 

(3)  creditors 

(4)  the  state 

The  manager  who  wishes  to  profit  fully  by  the  work  of 
his  accountants  and  appreciate  the  facts  behind  the  figures, 
needs  an  extensive  knowledge  of  accounting.  Such  informa- 
tion prepares  him  to  become  an  intelligent  critic  of  the  con- 
ditions of  his  business  and  enables  him  to  direct  efficiently 
the  work  of  his  bookkeepers. 

A  knowledge  of  scientific  accounting,  furthermore,  en- 
ables the  executive  to  utilize  the  records  of  his  business 
to  aid  efficiency.  They  become  milestones  of  progress  rather 
than  tombstones  of  disasters. 

Unless  the  business  man  understands  his  accounts,  how 
they  are  constructed,  and  what  they 
disclose,  he  is  unable  to  control  his 
business  properly.  He  is  at  the  mercy 
of  dishonest  employes  and  associates, 
and  unable  to  adjust  properly  his 
expenses  to  his  receipts  or  his 
resources  to  his  liabilities.  When 
production  is  efficient  or  sales  are 
adequate  and  profits  are  falling  off, 
there  is  a  reason. 


70 


Business  Administration 


Office  Organization  and  Management 


C.  C.  PARSONS 

Manager,  Shaw- Walker 

Company,  New  York 


During-  the  years  1904-1905,  Mr.  Parsons 
was  connected  with  the  Department  of 
Commerce,  University  of  Michigan,  as  special 
lecturer  on  the  subject  of  Business  Adminis- 
tration. The  following  year  he  was  a  special 
lecturer  on  the  same  subject  at  the  Indian- 
apolis Y.  M.  C.  A.  Commerce  School.  He 
lectured  on  the  "Cost  of  Production"  before 
the  National  Cloak  and  Suit  Manufacturers' 
Association. 

As  a  writer  Mr.  Parsons  is  known  as  the 
author  of  Business  Administration,  and  has 
been  a  contributor  of  numerous  articles  to 
magazines  on  the  subject  of  Business  and 
Office   Organization. 

For  twelve  years  Mr.  Parsons  has  been 
a  branch  manager  of  the  Shaw-Walker  Com- 
pany, Filing  Devices  and  Systems,  Chicago 
and  New  York.  He  is  now  manager  of  the 
New  York  branch. 

By  every  test — education,  lecture  and 
teaching  experience,  writing,  business  position, 
and  experience,  Mr.  Parsons  is  pre-eminently 
qualified  as  an  authority  and  specialist  to 
prepare  this  section  on  Office  Organization 
and  Management. 


A  BRIEF  TOPICAL  OUTLINE 

Arrangement,   Convenience,   and   Comfort  of  Office 

Lighting  Heating  Ventilating 

Intercommunication  Handling  Mail 

Office  Employes— Hiring,  Training,   Rules  and  Regulations, 

Tardiness  and   Irregularity,    Promotions,    Incentives, 

Bonuses,  Vacations 

Departmental  Meetings  Welfare  Work 

Machinery  and   Equipment  of  the   Office— Desks,    Chairs,    Filing 

Systems,    Telephones,    Typewriters,    Billing    Machines, 

Dictaphones,    Duplicating  Machines,   Addressing  Machines, 

Folding   Machines,    Stamp   Machines 

Records    and    Systems    for   Sales,    Purchasing,    Accounting,    and 

Other  Departments 

Relations  with  the  Public  The  Office  Manager 


LaSalle  Extension  University  71 

Office  Organization  and  Management 

What  business  or  office  manager  has  not  been  troubled 
by  such  problems  as  the  following! 

Office  Employes — their  selection,  training,  handling,  dis- 
cipline, promotion,  bonding,  welfare  work,  rules,  and  regu- 
lations. 

Filing  System — securing  ease  of  finding,  accuracy  in 
filing,  economy  of  time,  choice  of  equipment,  and  selection 
of  one  of  the  five  methods  of  classification  and  indexing  that 
best  suits  his  own  needs. 

Stenographic  Efficiency — the  management,  equipment, 
environment,  measurement  of  output,  and  standardization 
of  this  work. 

Pay -Roll  Work — the  preparation  of  pay-roll  checks  and 
their  distribution  at  least  expense  consistent  with  proper 
checks  and  safety. 

Statement  Work — how  to  get  statements  out  promptly, 
accurately,  and  at  a  minimum  cost. 

Mailing  Lists — their  collection,  classification,  indexing, 
accuracy  in  names  and  addresses,  and  adaptability  in  use 
to  his  own  business. 

These  and  the  problems  of  office  arrangement,  equip- 
ment, appliances,  utilization  of  space,  interdepartmental 
relations,  handling  of  mail,  messenger  service,  system  for 
the  credit,  collection,  purchasing,  and  other  departments, 
and  records  and  reports  are  all  indispensable  to  office 
efficiency. 

In  Office  Organization  and  Management  we  take  the 
stand  that  the  office  is  not  of  interest  to  the  management 
simply  because  it  represents  a  necessary  overhead  burden, 
but  that  the  office  is  a  vital  production  center.  A  modern 
office  is  a  great  factory  itself  with  a  ..■--*rr~  ^">:^v 

lot  of  machinery  that  is  almost  human      /-'  4^!%^\ 

in  its  accomplishments.     Its  products  -   "  ■  |/?|ek 

enter  into  purchasing,  manufacturing, 
selling,  collecting,  management,  and 
every  other  phase  of  business. 

The  proper  organization  and  man- 
agement of  this  vital  business  center 
will  enable  a  concern  to  do  more  busi- 
ness at  less  unit  cost. 


72  Business  Administration 

Only  Successful  Men  Know  How  To  Win 

Success 

The  value  of  information  and  advice  is  based  upon  its  source. 

The  best  corporation  lawyer  in  the  world  couldn't  give  you  as 
sound  medical  advice  as  just  an  average  doctor. 

And   as  primarily  the  Business  Administration  Course  and 

Service  deals  in  business  success,  its  sources  are  successful  busi- 
ness men. 

Each  branch  of  this  great  work  has  been  prepared  by  a  man 
who  is  recognized  as  a  master  of  his  subject. 

He  in  turn  has  compiled  from  both  his  own  experience  and  that 
of  other  successful  business  men  and  has  reduced  to  concrete,  un- 
derstandable form  all  the  available  fundamental  principles  and 
rules  for  success  pertaining  to  that  particular  subject. 

Each  individual  subject  has  a  beginning,  a  middle,  and  an  end; 
each  individual  subject  is  a  boiled-down  course  in  vital  principles. 

When  we  were  both  at  the  advice-taking  age,  folks  used  to  point 
out  certain  successful  men  whom  we  were  to  admire  and  emulate, 
and  then  they'd  say,  "Work." 

Now  these  very  men — leaders  of  the  field — are  showing  us  how 
to  work  intelligently — with  least  lost  motion  and  most  progress. 

The  Business  Administration  Course  and  Service  covers  all 
the  things  a  man  must  know  to  be  successful  in  business. 

It  is  authoritative  because  it  comes  from  successful  men.  The 
achievements  and  the  works  of  the  men  who  have  labored  to  pro- 
duce this  service  follow  herewith. 

They  institute  a  remarkable  staff  of  business  experts  and 
authorities  which  you  may  add  to  the  advancement  of  your  own 
work  and  business  through  the  Business  Administration  Course 
and  Service. 


La  Salle  ExfaA^ion  University 


Clearing  House 

Ike 


Business  World 


Into  the  doors  of  this  Institution  from  the  factories — the  banks — the  lawyers — 
the  accountants— the  psychologists — the  railroads — the  retail  stores — from  all  branches 
and  channels  of  business  have  come  the  fundamental  principles  underlying  commerce 
which  have  been  gathered  and  compiled  into  the  Business  Administration  Course 
and  Service. 

And  from  the  LaSalle  Extension  University  goes  forth  the  Business  Adminis- 
tration Course  and  Service,  supplying  to  men  in  varying  positions  of  life  located 
in  every  town,  hamlet,  city,  and  village  in  America,  the  practical  business  knowledge 
and  training  so  vitally  essential  for  increasing  their  efficiency  and  earning  power. 

Truly,  this  is  the  Information  Clearing  House  for  the  business  world. 


74  Business  Administration 

General  Administrative  Organization 

Officers 

Jesse  G.  Chapline,  President 
Haeky  E.  Farquharson,  Vice-President 
Samuel  MacClintock',  Secretary 
Kichaed  E.  Moss,  Treasurer 

Board  of  Directors 

Jesse  G.  Chapline  Samuel  MacClintock 

Geoege  A.  Spicee  Glen  C.  Bull 

Etchaed  E.  Moss  Moeeis  L.  Geeeley 

Harry  E.  Faequhaeson  Arnold  B.  Hall 

Heney  Robertson 

Advisory  Board 

William  Elmoee  Foster,  LL.B.,  Foster,  Paine,  Reynolds 
&  Sass.,  Chicago. 

Waltee  D.  Moody,  Former  General  Manager,  Chicago  Asso- 
ciation of  Commerce;  Director,  Chicago  Plans 
Commission. 

Rogee  A.  Pryor,  LL.D.,  Former  Justice,  Supreme  Court  of 
New  York. 

Joel  Hunter,  Certified  Public  Accountant,  Atlanta,  Ga. 

Chaeles  M.  Harvey,  Former  Editor,  St.  Louis  Globe-Demo- 
crat. 

George  E.  MacLean,  Ph.D.,  LL.D.,  Former  President,  State 
University  of  Iowa. 

J.  E.  Bangs,  Trust  Officer,  Colonial  Trust  &  Savings  Bank, 
Chicago. 

William  M.  0.  Dawson,  Former  Governor  of  West  Virginia. 

A.  M.  Harvey,  M.D.,  Crane  Company,  Chicago. 

William  Aethue  Chase,  LL.B.,  C.P.A.,  Former  President, 
National  Association  C.P.A.  Examiners;  Former 
Secretary,  Illinois  State  Board  of  Examiners. 

Department  Managers 

Glen  C.  Bull  A.  H.  Thoepe 

H.  E.  Keamee  H.  A.  Bontz 

J.  A.  Edwards  H.  A.  Doharr 

W.  B.  Martin  T.  R.  Gowenlock 

M.  E.  Power  F.  W.  Dignan 

C.  H.  Leopold 


Samuel  MacClintock 
Educational  Director 


William  Arthur  Chase 
C.P.A.,  LL.B. 


J.  G.  Chaplini 
President 


M.  E.  Power 
Sales  Consulting  Expert 


F.  W.  Dignan,  Ph.D. 
Editorial  Department 


T.  R.  Gowenlock,  LL.B. 

Advertising  Consulting 

Expert 


■lUSk 


Harry  E.  Farquharson 
Vice-President 


Wm.  Bethke,  M.A. 

Business  Organization 

Expert 


Richard  E.  Moss 
Treasurer 


76  Business  Administration 

General  Educational  Organization 

Samuel  MacClintock,  Ph.D.,  Director. 
J.  R.  Vance,  Secretary. 

Instruction  Departments 

William  Arthur  Chase,  LL.B.,  C.P.A. 

E.  C.  Samsel,  A.B.,  J.D. 

William  Bethke,  A.M. 

Asa  Colton. 

Edgar  P.  Hermann,  A.B. 

R.  E.  Riley. 

John  M.  Work,  A.B.,  LL.B. 

W.  S.  Rea,  A.B.,  J.D. 

Walter  M.  Parker,  A.B.,  J.D. 

Charles  V.  Clark,  Ph.B.,  J.D. 

Henry  P.  Keen. 

H.  T.  Scovill,  A.B. 

W.  E.  Russell. 

Ernest  W.  Clark,  LL.B. 

Julian  Clay  Risk,  A.B.,  J.D. 

L.  E.  O'Brien,  Ph.B. 

Aurelio  M.  Espinosa,  Ph.D. 

G.  T.  Crossland,  A.B.,  J.D. 

Editorial  Department 

Edgar  P.  Hermann,  A.B. 
C.  E.  Brant. 
H.  L.  Meland. 
Harriet  Jones,  Ph.B. 
Frank  W.  Dignan,  Ph.D. 

Consulting  Specialists 

William  Arthur  Chase,  Consulting  Accountant  and  Au- 
ditor, Chicago. 

John  P.  Curran,  Central  Freight  Association,  Chicago. 

Charles  M.  Cartwright,  Editor,  The  Western  Underwriter. 

Arthur  L.  Rice,  Managing  Editor,  The  Practical  Engineer. 

W.  H.  Chandler,  Mgr.,  Trans.  Dept.,  Chamber  of  Com- 
merce, Boston. 

J.  C.  Lincoln,  Traf.  Mgr.,  Merchants'  Assn.  of  New  York. 

C.  L.  Lingo,  Traf.  Mgr.,  Inland  Steel  Company. 

Edward  C.  Rentz,  Traffic  Manager,  Globe-Wernicke  Co., 
Cincinnati. 

H.  W.  Kastor  &  Sons,  Advertising  Experts,  Chicago. 

Donald  F.  Campbell,  Consulting  Life  Insurance  Actuary. 

W.  E.  MacEwen,  Traffic  Manager,  Peerless  Transit  Line, 
Cleveland. 

Rollo  L.  Lyman,  The  University  of  Chicago. 

H.  G.  Wilson,  Traf.  Commissioner,  Toledo  Commerce  Club. 


LaSalle  Extension  University  77 

The  Active  Conducting  Staff 

The  men  of  this  staff  have  been  chosen  for  conducting 
the  Business  Administration  service  primarily  because  of 
their  exceptional  business  abilities  and  educational  qualifi- 
cations. Each  one  is  a  specialist  in  his  particular  branch 
of  the  service. 

Being  practical  men  of  affairs  themselves,  it  is  only 
natural  that  the  excellent  Business  Administration  service, 
as  organized  and  conducted  by  them,  should  be  handled 
along  broad  and  practical  lines  in  accordance  with  the  prac- 
tical needs  of  modern  business. 

And  so  it  is. 

Every  subscriber  to  the  Business  Administration  service, 
in  his  relation  to  the  LaSalle  Extension  University,  feels 
that  he  is  one  of  a  group  of  hard-headed  practical  business 
men  associated  together  for  the  purpose  of  discussing  and 
solving  actual  business  problems.  Being  one  of  the  group, 
he  shares  in  all  the  knowledge  and  experience  of  the  experts 
who  have  prepared  and  are  conducting  this  service ;  likewise 
he  is  invited  to  join  freely  in  the  discussion,  relate  his  indi- 
vidual experiences,  and  express  his  opinions. 

And  in  return  he  receives  the  benefit  of  the  accumulated 
business  knowledge  of  the  best  business  brains  of  the  coun 
try  presented  in  a  clear,  understandable  manner  by  the 
active  members  of  the  group — the  above-named  service-con- 
ducting staff. 

If  you  have  read  carefully  the  outline  of  this  service  as 
presented  in  the  preceding  pages,  you  will  at  once  realize 
that  it  combines  most  admirably  the  two  elements  of  busi- 
ness training  and  business  service.  Everything  is  authori- 
tative and  practical  and  of  proved  value.  All  the  men  who 
have  co-operated  in  preparing  this  service,  the  lectures,  the 
bulletins,  and  all  other  matter  related  thereto,  know  how 
to  do  the  things  which  they  describe,  because  they  have  al- 
ready done  them  or  are  now  doing  them. 

And  the  same  is  equally  true  of  the  staff  of  able  busi- 
ness specialists  who  personally  conduct  the  service  for  the 
benefit  of  its  subscribers. 


78  Business  Administration 

Who  Pays  For  Efficiency? 

Let  there  be  no  mistake  about  this.  Inefficiency  pays  the  price 
of  efficiency — always. 

You  see  a  man  climb  to  the  topmost  rung  of  the  business  ladder. 
You  know  that  he  has  gained  and  that  he  holds  his  position  because 
of  his  comprehensive  grasp  of  the  entire  business  of  which  he  is 
head — in  a  word,  because  of  his  executive  ability. 

But  how  can  a  firm,  organization,  or  corporation  afford  to  pay 
any  one  man  a  salary  of,  say,  $50,000,  $75,000,  or  $100,000  a  year? 

Where  does  the  money  come  from  with  which  to  pay  his  big 
salary  ? 

From  his  own  business?  Yes,  but  only  in  the  sense  that  it 
comes  through  that  business.  It  comes  from  competitive 
business  concerns  headed  by  less  efficient  executive  man- 
agers. The  more  efficient  a  man  is,  the  larger  volume  of  business 
he  is  able  to  control;  and  every  bit  of  that  added  volume  is  taken 
away  from  his  competitors.  This  is  an  inexorable  law  of  the  business 
world.     Don't  forget  it.     Don't  think  that  anything   can  change  it. 

Hence  it  is  that  every  inefficient  man  is,  to  some  extent,  con- 
tributing to  the  greater  prosperity  of  the  more  efficient.  This  is 
equally  true  whether  in  the  case  of  competitive  business  firms,  or 
in  the  case  of  subordinates  in  any  business  concern.  Inefficiency 
must  pay  the  price,  while  efficiency  reaps  the  rewards. 

It  does  not,  therefore,  require  much  in  the  way  of  argument  to 
show  that  the  man  who  has  an  opportunity  to  subscribe  for  the 
Business  Administration  Course  and  Service  and  fails  to  do  so, 
really  pays  for  it  anyway. 

He  pays  by  sacrificing  opportunities  for  his  own  advancement. 

He  pays  for  it — although  he  may  not  realize  it  at  the  time  and 
although  the  actual  money  does  not  come  directly  out  of  his  own 
pocket — by  contributing  his  mite  to  the  higher  salaries  of  the  more 
efficient  men  above  him.  The  man  who  works  with  pick  and  shovel  in 
the  ditch  helps  pay  the  salary  of  the  man  who  stands  around  and 
bosses  the  job,  just  as  the  labor  boss,  in  turn,  helps  pay  the  still  larger 
salary  of  the  contractor  who  does  nothing  in  the  way  of  manual  work 

He  pays  for  it — yes — but  does  not  receive  its  benefits. 

The  Business  Administration  Course  and  Service  you  now 

have  the  opportunity  to  obtain  offers  the  shortest  cut  to  business  ef- 
ficiency and  the  surest  means  to  acquire  it  that  has  ever  been  devised. 

Don't  make  the  big  mistake  of  paying  for  it  for  some 
one  else. 


LaSalle  Extension  University  79 


Which? 


Which  will  you  be  now? 

You  have  seen  how  the  Business  Administration  Course  and 

Service  makes  men  more  efficient,  more  able  to  do  things,  to  plan, 
and  to  execute;  how  it  increases  confidence,  initiative,  and  self- 
reliance. 

You  have  observed  how  admirably  it  meets  and  satisfies  every 
important  business  need;  how  it  is  organized  to  solve  business 
problems;  who  have  prepared  the  work  in  its  various  sections;  and 
what  specialists  are  conducting  it  for  your  benefit. 

You  have  noticed  what  the  aim  of  the  service  is — training 
executives.  In  other  words  it  prepares  you  to  become  more  of  a 
leader  in  the  affairs  of  the  world.  And  you  will  reap  the  rewards. 
You  will  be  able  to  acquire  more  of  the  desirable  things  of  life. 

The  facts  are  before  you. 

You  must  judge. 

Opportunity  has  played  a  continuous  tattoo  at  your  door. 

It  is  still  knocking. 

Lest  you  should  slight  the  call,  ask  us  right  now  as  to  how  you 
may  secure  the  benefits  of  this  service. 


La  Salle  Extension  University 

W/ie  World's  Greatest  O x tension.    University 

-     Chicago 


80  Business  Administration 


Our  Responsibility 

The  LaSalle  Business  Administration  Course  and 
Service  is  a  big  undertaking.  You  have  a  right  to 
know  whether  this  institution  has  the  capital,  ability, 
and  experience  to  conduct  it  successfully. 

The  capital  and  resources  of  the  University  are 
over  a  million  and  a  half  dollars.  The  people  who 
are  back  of  this  course  and  service  testify  to  our  abil- 
ity. The  University  was  incorporated  in  its  present 
form  in  1909.  Since  then  it  has  constantly  grown 
and  expanded  its  functions  until  now  it  is  the  largest 
exclusively  extension  university  in  the  world.  The 
course  and  service  is  supported  by  years  of  successful 
experience. 

We  take  pleasure  in  referring  to  the  Dun  or  Brad- 
street  commercial  rating  books  and  to  the  following 
Chicago  banks  and  trust  companies :  The  Central 
Trust  Company  of  Illinois,  the  Englewood  State  Bank, 
the  Fort  Dearborn  National  Bank. 

The  LaSalle  Extension  University  is  a  member 
of  the  Chicago  Association  of  Commerce. 


'The  man  who  doesn't 
read  good  books  has  no  ad- 
vantage over  the  man  who 
can't  read  them." 


!il  .:;,!!■■    !;!:::i!:!    Hf] ;| 


UNIVERSITY  OF  ILLINOIS-URBANA 


3  0112  110843551 


ADMINISTRATION  BUILDING 

2550  Michigan  Avenue 
CHICAGO 


